SoftBank-owned Arm plans to acquire Oracle-backed chip designer Ampere Computing amid Nvidia’s dominance: Report – Intel (NASDAQ: INTC ), ARM Holdings (NASDAQ: ARM )

Arm Holdings PLC – ADR arm Exploring potential acquisitions of semiconductor design companies Ampere Computing LLCmarking further integration in the field of artificial intelligence chips.

what happened: Ampere, which designs data center processors using Arm technology and is supported by: Oracle Corporation ORCLThe company has been expressing acquisition intentions while working with financial advisers to explore strategic options, Bloomberg reported on Wednesday, citing people familiar with the matter.

The company’s previous proposed valuation was $8 billion SoftBank Group Corporation SFTBY 2021 Minority Investments.

The potential deal comes as Ampere faces increasing competition in the artificial intelligence chip market. In May, the company and Qualcomm Qualcomm Launched a server focused on artificial intelligence that combines Ampere’s CPU with Qualcomm’s Cloud AI 100 Ultra chip for inference tasks. The partnership aims to establish a stronger foothold in the data center market, which is currently dominated by: NVIDIA Corporation NVDA.

Arm Holdings and Ampere Computer did not immediately respond to Benzinga’s request for comment.

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why it’s important: Oracle currently owns 29% of Ampere and has an option to gain control. The startup filed confidentially for an IPO in April 2022 and is led by CEO Renee Jamespredecessor Intel Corporation Management staff.

In May, the company announced plans for a next-generation CPU with 256 processing cores using British Semiconductorof TSM 3nm process.

For Arm, acquiring Ampere could accelerate its evolution from a technology licensor to a more comprehensive chip manufacturer and potentially leverage Ampere’s engineering expertise in the server market. However, the report said discussions remain fluid and could fail.

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