Any sale to an overseas bidder would likely be reviewed by national security officials due to the strategic importance of AI technology. The company, which has raised over $700m from investors including Microsoft and Sequoia, was valued at $2.8bn in late 2020. However, it has struggled to sell its "intelligence processing units", a rival to Nvidia's graphics processing units. Graphcore's losses in 2022 grew by 11% to $204.6m, while revenue fell from $5m to $2.7m. The company has also been impacted by the closure of its business in China due to US controls on selling AI technology.
Key takeaways:
- British microchip company Graphcore is considering a sale to foreign owners, having struggled to profit from the AI boom. The company has been in talks with major tech companies to raise new funding to cover heavy losses.
- Any sale to an overseas bidder would likely be reviewed by national security officials due to the strategic importance of AI technology. Rumoured buyers include Arm, SoftBank, and OpenAI, although Arm is reportedly not involved in discussions.
- Graphcore's investors, including Chrysalis and Baillie Gifford, have significantly increased the value of their stakes in the company, potentially indicating an upcoming deal. The company was valued at $2.8bn in late 2020, but one investor has recently calculated a $528m valuation.
- Despite raising over $700m in funding from investors such as Microsoft and Sequoia, Graphcore has struggled with sales and has been hit by the closure of its business in China due to US controls on selling AI technology. The company has also laid off staff and closed international offices to cut costs.