According to informed sources, SoftBank Group and its subsidiary Arm Holdings (ARM.US) are exploring a Trade to acquire Ampere Computing LLC. The informed sources indicate that the Semiconductor design company Ampere, supported by Oracle (ORCL.US), is attracting Arm's acquisition interest while exploring strategic options.

Informed sources warn that negotiations could still break down. Ampere could also ultimately be acquired by another company.

Reports say that in 2021, SoftBank in Japan proposed a Private Equity investment in Ampere, valuing it at 8 billion USD. The Semiconductors designed by Ampere use Arm's technology. It is not yet clear what valuation SoftBank, Arm, and Ampere are discussing.

Media reported last September that Ampere had been working with a financial advisor to help attract buyer interest. This company, based in Santa Clara, California, is interested in making a Trade with larger companies in the Industry, indicating it sees the path to an initial public offering (IPO) as not easy.

Oracle stated last year that it owns 29% of this startup and has the option to exercise future investment rights, thereby gaining control over this chip manufacturer. Early supporters of Ampere also include The Carlyle Group.

Although Ampere is expected to benefit from the ongoing AI boom, market competition is intensifying, with several large Technology companies vying to develop chips similar to those of Ampere. As the Datacenter Industry undergoes restructuring to embrace the AI era, there is strong interest in controlling key components; however, like larger competitors Intel (INTC.US) and AMD (AMD.US), Ampere must also contend with the trend of spending shifting from Central Processing Units (CPUs) to NVIDIA accelerator chips.

Renee James, founder and CEO of Ampere, and former Intel executive, once considered taking Ampere public. The company announced in April 2022 that it had secretly submitted an application to go public in the USA at a time when demand for chips was surging.

The Ampere Trade will add fuel to the semiconductor trading frenzy. According to data compiled by Bloomberg, global deals involving chip companies more than doubled last year, reaching over 31 billion dollars.