In other news, OpenAI, the Microsoft-backed company, is reportedly considering manufacturing its own AI chips to address a global shortage of AI accelerators. The decision is driven by the need to scale and service enterprise customers who require more bespoke models than the consumer-oriented GPT-4, which OpenAI currently cannot deliver.
Key takeaways:
- AI chip startup Graphcore needs to raise new funds within the next few months to offset losses and remain a "going concern". The company reported a loss before tax of $204.6 million for the year ended 31 December 2022.
- Graphcore's losses were largely due to increased operating costs, primarily from investment in research and development. The company expects further losses for 2023 as it continues to invest in product development.
- The company's revenue for 2022 was $2.7 million, down 46% year-on-year. Graphcore cited headwinds in the wider macroeconomic environment which resulted in softer demand for hardware sales.
- Graphcore's annual report indicates that the company needs further funding before a planned cashflow break-even point is reached. The company has so far raised more than $600 million from investors.