SoftBank Group Corp has acquired AI chip maker Graphcore, which struggled to compete with rivals due to limited adoption of its intelligence processing units (IPUs) in the artificial intelligence field. IPUs are designed specifically for AI compute and enable novel work to advance machine intelligence. SoftBank and OpenAI considered a £400m+ move for the Bristol-based chipmaker after it suffered a substantial drop in revenues, resulting in layoffs and closed offices. The undisclosed amount deal makes Graphcore a wholly owned subsidiary of SoftBank and preserves its name. Graphcore raised over $700m from investors such as Sequoia and Microsoft, which ceased using its chips in 2020. Although the company’s Chinese business closed following export restrictions, its headquarters and offices will remain operational in Bristol, Cambridge, London, Gdansk and Hsinchu.
Graphcore’s co-founder and CEO Nigel Toon views SoftBank’s acquisition as an opportunity to redefine AI technology, stating that demand for AI compute is vast and continues to grow, and there is much to do to improve efficiency, resilience and computational power to unlock AI’s full potential. The investment partner at SoftBank Investment Advisers, Vikas J. Parekh, acknowledged graphcore’s importance to the artificial general intelligence journey and the necessity of next-generation semiconductors and computer systems in that journey. Graphcore, valued at $2.8 billion in its most recent funding round in 2020, needed to raise more funds by May 2024 to continue its operations. The acquisition by SoftBank provides this stability and opportunity for Graphcore to realize its full potential.
