SoftBank group acquires AI chipmaker Graphcore
Once considered a rival to Nvidia, Graphcore has faced financial struggles, leading to workforce reductions and operational shutdowns in several countries.
SoftBank Group, the Japanese multinational investment holding company, has acquired Graphcore, a British AI chipmaker, in a strategic business move that ends speculation about Graphcore’s future amid financial struggles. Once positioned as a competitor to Nvidia, Graphcore has faced challenges securing sufficient investment despite its technology potential.
Graphcore, valued at $2.77 billion in 2020, had been grappling with financial viability, including layoffs and operational closures. CEO Nigel Toon acknowledged the company’s difficulties but expressed optimism about the deal with SoftBank, highlighting the substantial resources it brings.
Toon emphasised the significant investment from SoftBank, noting its transformative impact on Graphcore’s global competitiveness. However, he pointed out structural barriers in the UK tech industry, such as limited domestic investment from pension funds, hindering growth opportunities.
Regarding potential collaboration with SoftBank-owned Arm Holdings, a leading chip designer, Toon indicated Graphcore’s intention to leverage synergies within SoftBank’s portfolio, although specifics were not disclosed.
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