Arm plans to acquire data center chip maker Ampere

Arm plans to acquire data center chip maker Ampere

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Arm plans to acquire data center chip maker Ampere



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A remarkable development is taking place in the semiconductor world. One of the world’s leading chip design companies Armwhich develops data center-focused high-performance processors Ampere ComputingIt is reported that he is considering purchasing . According to reports, negotiations for this purpose are currently in the early stages.

Ampere and Arm partnership or full acquisition?

Ampere Computing, a California-based startup, is known for developing energy-efficient processors built on Arm’s architecture. The company, in which Oracle holds a 29 percent stake, was priced at $8 billion during an investment proposed by SoftBank in 2021. But the current It is unclear what the market value is.

Both companies continue to evaluate different cooperation options as well as a possible acquisition. On the other hand, it is among the scenarios discussed that Ampere may attract the attention of other potential buyers.

Ampere’s Other ve Other Max Flagship products such as are in high demand by cloud service providers for energy efficiency and scalability. These processors Intel and AMD alternative to x86 chips It draws attention as.

However, under the leadership of CEO Rene Haas, Arm wants to get more involved in the data center market by going beyond the traditional chip design licensing business model. The acquisition of Ampere could greatly accelerate Arm’s goals. Ampere’s team of engineers consists mostly of experienced names from Intel’s server chip department. This could enable Arm to gain a competitive advantage in the data center market.

However, this move brings with it some risks. Arm’s neutrality policy with other companies from which it currently licenses its technology could become questionable if Ampere is acquired. Additionally, SoftBank-owned Arm could be subject to strict scrutiny from regulators in such a deal. Additionally, Oracle’s influence on Ampere is another factor that complicates these negotiations. The technology giant has the option to gain more control in the company by increasing its shares in Ampere. This situation could directly affect possible negotiations between Arm and Ampere.