AsianFin -- SoftBank Group announced on Wednesday its plans to acquire Ampere Computing, a U.S.-based chip startup founded by former Intel president Renee James, in an all-cash transaction valued at $6.5 billion. The deal underscores SoftBank's focus on bolstering its artificial intelligence (AI) capabilities.

Ampere specializes in designing data center central processing unit (CPU) chips based on Arm Holdings' computing architecture. These chips are utilized by major companies, including Oracle, to power their cloud computing infrastructure.

As part of the agreement, Oracle (ORCL) and Carlyle Group (CG), Ampere's largest investors, will divest their stakes in the company, SoftBank stated in a release.

Founded in 2018 by Intel veteran Renee James, Ampere has distinguished itself by developing CPUs with its own custom computing core technology—a feat typically undertaken by industry giants like Apple or Qualcomm. The acquisition highlights SoftBank's strategic push to expand its presence in the rapidly evolving AI and semiconductor sectors.