Softbank, a Japanese conglomerate, has acquired British artificial intelligence (AI) chip firm Graphcore in a deal that has raised eyebrows in the tech industry. The sale price, rumored to be $500 million (£390 million), is considerably less than the £2 billion valuation Graphcore had in 2020 after a financing round.
Graphcore, once seen as a potential rival to market leader Nvidia, has faced challenges in recent years, including slowing sales and the closure of offices in Norway, Japan, and South Korea. Despite these setbacks, Graphcore’s founder Nigel Toon remains optimistic about the company’s future under Softbank’s ownership.
The acquisition has sparked debate about the UK’s ability to develop firms that can compete with tech giants on a global scale. Some see the deal as a positive development for UK tech, while others view it as a missed opportunity for the country’s financial markets.
Graphcore’s Colossus series of computer chips are known for their powerful processing capabilities, but the company will need substantial capital to stay competitive in the AI chip market. With Softbank’s backing, Graphcore hopes to drive growth and innovation in the industry.
The acquisition of Graphcore by Softbank is a significant milestone for both companies and the broader tech sector. As Graphcore continues to evolve under its new ownership, the future of AI chip technology remains an exciting and dynamic space to watch.
