Discover ANY AI to make more online for less.

SoftBank's acquisition of AI chip designer Ampere may be facing an FTC probe

SoftBank's $6.5 billion acquisition of AI-chip designer Ampere is facing an in-depth US government probe that may delay the deal, according to Bloomberg. The Federal Trade Commission (FTC) has opened a so-called second request for information, a relatively rare investigation that can go on for more than a year or even lead to a lawsuit blocking it, according to people familiar with the matter. Neither SoftBank nor Ampere have commented on the matter.
Japan's SoftBank, headed by Masayoshi Son, already owns chip designer Arm following a $32 billion acquisition in 2016. Ampere, founded in 2018 with a focus on cloud-native computing, recently moved strongly into AI chip design — so SoftBank is betting that the company will bolster's Arm's research and development in that area. Under the deal, Santa Clara-based Ampere would would keep its name and run as a wholly-owned subsidiary. 
If the deal goes through, SoftBank will own Arm, UK chip designer Graphcore Ltd. and Ampere, all key players in the AI space. The FTC may therefore be probing the deal as a potential antitrust issue. SoftBank's attempt to sell Arm to NVIDIA was eventually abandoned for similar reasons. The AI space has also become politicized with projects like Stargate, which heavily involves SoftBank as well. 
SoftBank has battled some headwinds of late. Stargate has been facing delays due to US tariffs and its Arm division is battling Qualcomm over chip licenses and antitrust complains in Europe, the US and South Korea. This article originally appeared on Engadget at https://www.engadget.com/ai/softbanks-acquisition-of-ai-chip-designer-ampere-may-be-facing-an-ftc-probe-120006145.html?src=rss