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