Arm considers acquisition of Oracle-backed Ampere Computing to expand data center footprint

By Pune Media On Jan 9, 2025 21

Arm is reportedly exploring a potential acquisition of Ampere Computing, a startup focused on high-performance processors for data centers. According to Bloomberg, Arm is evaluating various strategies, including a full acquisition or alternative forms of collaboration, as it aims to strengthen its presence in the growing market for cloud computing infrastructure.

Ampere Computing, backed by Oracle, specializes in designing Arm-based chips for data centers, offering an energy-efficient alternative to traditional x86 processors from Intel and AMD. The company has carved a niche in the competitive semiconductor market, capitalizing on the rising demand for chips optimized for cloud-native workloads and scalable server environments. We have also seen Ampere’s chips employed in computers that may interest PC enthusiasts – like the recently released Thelio Astra from System76 featuring up to a 128-core Ampere Altra Max CPU.

The potential deal is seen as part of Arm’s broader strategy to diversify its revenue streams and expand its foothold in the lucrative data center market. While Arm dominates in the mobile and embedded chip sectors, the data center segment has traditionally been dominated by x86 architecture. Ampere’s focus on Arm-based chips aligns with Arm’s ambitions to challenge the x86 incumbents and establish itself as a significant player in the server space.

Ampere’s flagship products, such as the Altra and Altra Max processors, have gained traction among cloud service providers for their performance-per-watt efficiency and ability to handle modern workloads. A merger or acquisition could enable Arm to leverage Ampere’s expertise and customer base, accelerating its penetration into data centers.

While the potential acquisition offers strategic synergies, it also raises questions about Arm’s ability to navigate regulatory and competitive pressures. Given Arm’s neutral position as a licensor of its chip designs to a broad range of customers, acquiring Ampere could create potential conflicts of interest with other companies in the Arm ecosystem that compete in the server market.

Additionally, any acquisition would likely attract scrutiny from regulators, especially as Arm prepares for its next phase of growth following its recent IPO. SoftBank and Arm will need to carefully evaluate whether a full acquisition or a strategic partnership with Ampere would better align with their long-term objectives.

As discussions remain in the early stages, it is unclear whether Arm will proceed with a full acquisition or opt for a different arrangement with Ampere. Both companies have declined to comment on the matter.

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}

_{Aggregated From –}

_{Source link}