Japanese investment giant SoftBank Group has acquired the UK-based artificial intelligence chipmaker Graphcore for an undisclosed amount.
The Bristol-headquartered company, known for its intelligence Processing Unit (IPU), has become a wholly owned subsidiary of SoftBank.
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Despite Graphcore’s high valuation of $2.8bn in 2020, the company faced challenges in expanding its customer base and reported losses in 2022, according to Bloomberg.
Graphcore’s IPU technology was developed to advance AI applications, a field that has seen surging demand for specialised silicon.
The company’s financial struggles became apparent with its 2022 sales figures, which stood at $2.7m against losses of $204.6m.
In a filling in 2023, Graphcore acknowledged the necessity of further investment for the company’s survival.
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By GlobalDataThe company reduced its headcount and shuttered operations in China, Japan, Norway, and South Korea, reported Reuters.
As per the terms of the agreement, Graphcore will retain its brand and continue operations from its Bristol headquarters, with additional offices in Cambridge, London, Gdansk, and Hsinchu.
Graphcore co-founder and CEO Nigel Toon said: “This is a tremendous endorsement of our team and their ability to build truly transformative AI technologies at scale, as well as a great outcome for our company.
“Demand for AI compute is vast and continues to grow. There remains much to do to improve efficiency, resilience, and computational power to unlock the full potential of AI. In SoftBank, we have a partner that can enable the Graphcore team to redefine the landscape for AI technology.”
SoftBank Investment Advisers managing partner Vikas Parekh said: “Society is embracing the opportunities offered by foundation models, generative AI applications and new approaches to scientific discovery.
“Next generation semi-conductors and compute systems are essential in the AGI journey, we’re pleased to collaborate with Graphcore in this mission.”
This move marks SoftBank’s second acquisition of a UK semiconductor company, following the 2016 purchase of ARM Holdings, a pivotal player in the global smartphone market.
