UK AI Chipmaker Graphcore Acquired by SoftBank
SoftBank, a Japanese multinational, has formally acquired Graphcore, a UK-based AI chipmaker. The terms of the deal remain undisclosed, but Graphcore's CEO Nigel Toon has confirmed that the acquisition is a positive outcome for the company.
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Image Credits: Chris J. Ratcliffe/Bloomberg via Getty / Graphcore CEO Nigel Toon]
Founded in 2016 in Bristol, Graphcore has developed a new type of processor called an "intelligence processing unit" (IPU), designed specifically for AI workloads. The company had raised around $700 million since its inception and was valued at nearly $3 billion in 2020. Despite its promising start, Graphcore faced challenges, including the loss of potential lucrative cloud deals and a forced exit from China due to US export rules.
The acquisition by SoftBank, which has a history of investing in UK semiconductor companies, including Arm, is seen as a strategic move to bolster its AI aspirations. SoftBank has been expanding its presence in the AI space, investing in data centers, robotics, and semiconductors.
Graphcore's CEO Nigel Toon has expressed optimism about the acquisition, stating that there will be no layoffs and the company plans to add to its headcount in the UK. Both Toon and CTO Simon Knowles will remain in their executive and directorship roles.
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Graphcore co-founder and CTO Simon Knowles.Image Credits: Graphcore]
While Graphcore's early promise may not have been fully realized, the acquisition by SoftBank is seen as a positive step forward for the company and the AI industry as a whole.
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