Ampere, the semiconductor firm established by former Intel executive Renee James, is said to be nearing a sale to SoftBank, adding another chapter to the ongoing narrative surrounding the company’s ownership.
This transaction could peg Ampere’s value at approximately $6.5 billion, according to Bloomberg. This marks a decrease from the $8 billion valuation discussed back in 2021, when SoftBank explored the possibility of acquiring a minority stake.
Ampere specializes in designing ARM-based chips intended for data center applications, making it an attractive target for SoftBank, the majority stakeholder in chip designer ARM Holdings. Ampere has thus far refrained from making comments on the matter.
Founded by James in 2017 after a 28-year tenure at Intel—during which she was overlooked for the CEO position—Ampere represents a significant venture for her. Prior to this, she was involved in private equity at Carlyle and sat on the board of Oracle.
James identified an opportunity when chipmaker Macom sought to divest part of its chip business, leading her to present her proposal to Carlyle and Oracle for the acquisition. Both institutions supported her financially in this endeavor.
Upon founding Ampere, James became one of the two female leaders presiding over a semiconductor firm, alongside AMD’s CEO, Lisa Su.
James envisioned developing data center chips using low-energy ARM designs—a concept that was innovative at the time. Oracle and several significant cloud service providers, including Microsoft, soon became major clients.
However, in an annual report released in October, Oracle revealed that it not only owned 29% of Ampere but also held options and convertible notes that could enable it to gain a controlling stake in the company.
These agreements were established both with Ampere directly and with other undisclosed investors.
“If either of such options is exercised by us or our co-investors, we would obtain control of Ampere and consolidate its results with our results of operation,” Oracle stated.
In the same filing, Oracle indicated that James would depart from the board at the conclusion of her term in mid-November. She has served on Oracle’s board since 2015.
As Ampere is a private entity, the extent of James’ ownership remains undisclosed, despite her serving as CEO since its inception.
Nevertheless, rumors regarding the company being on the market have circulated since September, and the potential agreement with SoftBank remains tentative. Sources have informed Bloomberg that the arrangement may evolve or potentially fall through entirely.
Compiled by Techarena.au.
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