July 12, 2024 – In a major shakeup within the AI chip landscape, Japan’s SoftBank Group has officially acquired Graphcore, a struggling British AI chipmaker, in a deal that will see the latter operate as a wholly-owned subsidiary under SoftBank’s umbrella while retaining its brand identity. The financial terms of the transaction remain undisclosed.
Founded in 2016 in Bristol, southwestern England, Graphcore rose to prominence with its groundbreaking Intelligence Processing Units (IPUs), multiple generations of AI accelerators designed to propel machine learning capabilities. Once hailed as the “British counterpart to NVIDIA,” Graphcore faced significant challenges in recent years, notably the absence of fresh funding since 2020 and the loss of a crucial order from Microsoft, leading to financial constraints and operational difficulties that hindered its ability to keep pace with the rapidly evolving AI chip market.
Speaking on the acquisition, Nigel Toon, Graphcore’s Co-founder and CEO, expressed optimism, viewing it as a testament to the company’s team and their commitment to developing transformative AI technologies. “This marks a significant milestone for our company, recognizing the immense potential of our team and the AI technologies we’ve built,” Toon remarked.
Underscoring the relentless growth in demand for AI computing, Toon emphasized the ongoing need for advancements in efficiency, resilience, and computational power to unlock AI’s full potential. “With SoftBank as our partner, we’re poised to redefine the landscape of AI technology,” he added, suggesting that the partnership will provide the necessary resources and support to propel Graphcore forward.
Further assuaging concerns about the future of Graphcore’s workforce, Toon confirmed to TechCrunch that the acquisition would not result in job cuts and hinted at possible expansions in the company’s UK operations. This positive outlook signals SoftBank’s commitment to not only preserving but also enhancing Graphcore’s capabilities, positioning it for renewed growth within the broader AI ecosystem.
As SoftBank continues to solidify its position in the semiconductor and AI sectors, the acquisition of Graphcore represents a strategic move aimed at leveraging the latter’s expertise in IPU technology to further strengthen its portfolio and drive innovation in the field. The coming months will undoubtedly reveal more about how this partnership will shape the future of AI chip development and deployment.
