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SoftBank acquires UK AI chipmaker Graphcore | TechCrunch

Jul 12, 2024 - news.bensbites.com
UK-based chip company Graphcore has been officially acquired by Japanese multinational SoftBank. The acquisition comes after prolonged negotiations and regulatory approvals, with the exact value of the deal remaining undisclosed. Graphcore, which was valued at nearly $3 billion in 2020, has developed an "intelligence processing unit" (IPU) as an efficient alternative to graphics processing units (GPUs) for AI workloads. Despite facing challenges, including a forced exit from China and missed cloud deals with Microsoft, the company is expected to expand its workforce and maintain its executive team post-acquisition.

The acquisition has already received all necessary antitrust and security approvals, and Graphcore will continue to operate as a wholly-owned subsidiary under SoftBank, retaining its existing name and headquarters in Bristol. The move is seen as part of SoftBank's strategy to bolster its AI aspirations, with Graphcore expected to play a significant role in the development of next-generation semiconductors and compute systems.

Key takeaways:

  • UK-based chip company Graphcore has been officially acquired by Japan's SoftBank, although the exact value of the deal has not been disclosed.
  • Graphcore, founded in 2016, has developed a new kind of processor known as an 'intelligence processing unit' (IPU), which is designed specifically for AI workloads.
  • Despite facing challenges and losses in recent years, Graphcore co-founder and CEO Nigel Toon remains positive about the acquisition, stating that it will likely lead to significant additions to the company's headcount in the UK.
  • The acquisition has already received all necessary regulatory approvals, and Graphcore will continue to operate under its existing name as a wholly owned subsidiary of SoftBank.
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