SoftBank Group has purchased British chip firm Graphcore Ltd to bolster its focus on AI processors. Graphcore, based in Bristol, announced on Thursday that SoftBank Group Corp had acquired it, making it “a wholly owned subsidiary of SoftBank while continuing to operate under the Graphcore name.”
Details of the Graphcore Acquisition by SoftBank
Graphcore develops accelerators for AI and machine learning and has introduced a massively parallel Intelligence Processing Unit (IPU) that holds the machine learning model inside the processor. This technology puts it in competition with Nvidia, a dominant player in the AI chip market.
Founded in 2016, Graphcore has raised hundreds of millions of dollars from big-name investors. However, it struggled in 2022 after a significant revenue drop, leading to job losses. In early 2023, Facebook owner Meta Platforms reportedly acquired Graphcore’s AI networking technology team.
Although based in Bristol, Graphcore has offices in London, Gdansk (Poland), Hsinchu (Taiwan), and Cambridge’s ‘silicon fen’ in the UK. The companies did not disclose the financial terms of the deal, but reports suggest a purchase price between $500 million and $600 million. The UK’s Business Department’s investment security unit is currently reviewing the acquisition.
Endorsement and Future Plans
Graphcore’s CEO, Nigel Toon, welcomed the acquisition, noting the ongoing demand for AI computing. “This is a tremendous endorsement of our team and their ability to build truly transformative AI technologies at scale,” said Toon. “Demand for AI compute is vast and continues to grow.”
Vikas J. Parekh, Managing Partner at SoftBank Investment Advisers, added, “Next-generation semiconductors and compute systems are essential in the AGI journey. We’re pleased to collaborate with Graphcore in this mission.”
The acquisition by SoftBank is seen as a strategic move to strengthen its position in the AI technology landscape, ensuring that Graphcore can continue to innovate and expand its capabilities in AI and machine learning.
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