Semiconductor and AI technologies have faced increased national security scrutiny due to their importance to defence and critical infrastructure. Graphcore, which develops semiconductors for AI software, has struggled in the market dominated by Nvidia. Despite raising over $700m, Graphcore needs new funding to continue operating. Talks with SoftBank have recently made progress after months of wavering. However, a sale at recent valuations would mean some early shareholders make a loss on their investments.
Key takeaways:
- A proposed takeover of British AI company Graphcore by Japanese firm SoftBank is facing a national security review due to concerns over foreign buyers targeting sensitive UK technology.
- The deal, which is expected to be worth more than $500m, is being scrutinised by the Business Department’s investment security unit (ISU).
- Graphcore, which develops semiconductors for AI software, has been struggling to gain traction in the market dominated by Nvidia and needs to secure new funding to keep operating.
- Recent valuations have put Graphcore’s value at between $450m and $1bn, which could mean some earlier shareholders make a loss on their investments if the sale goes through at that price.