Oracle-backed Ampere explores sale amid shifting semiconductor landscape

Sep 22, 2024

Ampere, an Oracle-backed semiconductor company, considers a sale amid tough competition and changing market dynamics.

Oracle-backed Ampere explores sale amid shifting semiconductor landscape

: Ampere Computing, supported by Oracle, is exploring a potential sale. The company focuses on Arm-based processors for data centers and recently introduced CPUs with up to 256 cores. Changing market conditions and stiff competition have made Ampere reconsider its IPO plans. Ampere's chips are used by major cloud providers like Oracle, Microsoft, and Google.

Ampere Computing, backed by Oracle, is assessing its strategic options, including the possibility of a sale. This potential sale is significant due to Ampere's role in providing Arm-based CPUs for data centers, which could shape the competitive landscape of this market.

Founded in 2018 by Renee James, the company has seen substantial investment, including an $8 billion valuation following SoftBank's proposed investment in 2021. Ampere has developed CPUs with up to 256 cores and plans to release a 512-core model.

Major cloud providers, such as Oracle, Microsoft, and Google, have adopted Ampere’s chips. However, the semiconductor industry is evolving, with a growing focus on AI infrastructure and accelerator chips, pressing companies like Ampere to adapt.