Proactive Investors - SoftBank has acquired UK-based chipmaker Graphcore as part of its significant investment in artificial intelligence. Graphcore, founded in 2016, will join SoftBank's portfolio alongside Arm Holdings PLC (NASDAQ:ARM).
In an article in the Financial Times, Nigel Toon, Graphcore’s CEO, highlighted the extensive discussions with SoftBank and the resources his company will now access to compete with US giants like Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD).
Despite its innovative AI chips, Graphcore has struggled financially, with $2.7 million in sales and $205 million in losses in 2022.
The deal's value is estimated at over $600 million, below the $700 million previously raised in venture capital, and significantly less than its $2.5 billion valuation in 2020.
Graphcore plans to exit its China business and focus on AI markets in the US and Europe. SoftBank aims to position itself at the forefront of the AI evolution, leveraging Graphcore's capabilities and Arm's market position to drive innovation in AI infrastructure.