SoftBank acquires British AI chip maker Graphcore
On July 11, 2024, SoftBank announced that it had acquired British AI chip manufacturer
Graphcore joins SoftBank Group to build next generation of AI compute
https://www.graphcore.ai/posts/graphcore-joins-softbank-group-to-build-next-generation-of-ai-compute
SoftBank acquires UK AI chipmaker Graphcore | TechCrunch
https://techcrunch.com/2024/07/11/softbank-acquires-uk-ai-chipmaker-graphcore/
Japan's SoftBank acquires British AI chipmaker Graphcore | Reuters
Founded in Bristol, UK in 2016, Graphcore develops a processor specialized for AI applications called the Intelligence Processing Unit (IPU), and is expected to become a rival to NVIDIA , which is booming in the AI market. In the second half of 2020, the company's valuation reached approximately $2.77 billion (approximately 440 billion yen).
But Graphcore has struggled to secure the funding it needs to compete, losing its cloud contract with Microsoft and missing out on the UK government's plans to develop an 'exascale' computer. In a 2023 report , the company revealed it needed more funding to break even, and cut its workforce by a fifth to 494, as well as shutting down operations in Norway, Japan and South Korea.
'While we were initially successful in raising capital to help us succeed, the amount of capital available to us was tiny compared to other major companies in our space,' said Nigel Thun, co-founder and CEO of Graphcore. 'As a company of around 500 people, we found ourselves competing with companies with tens of thousands of employees.'
SoftBank has come to the rescue of Graphcore. It has been reported that Masayoshi Son, founder of SoftBank Group, is considering investing up to $100 billion (about 16 trillion yen) to launch an AI semiconductor venture to compete with NVIDIA, and the acquisition of Graphcore
SoftBank founder Masayoshi Son to invest 15 trillion yen to set up 'Project Izanagi' AI semiconductor venture to compete with NVIDIA - GIGAZINE
After prolonged negotiations and regulatory approval, SoftBank officially acquired Graphcore on July 11, 2024. 'This is a major boost to the Graphcore team and SoftBank's ability to build truly innovative AI technology at scale,' said Toon. 'The demand for AI computing is huge and has grown significantly in recent years. To maximize the potential of AI, further research is needed to improve efficiency, resilience and computational power. This acquisition gives SoftBank a new partner in Graphcore that will enable us to redefine the landscape of AI technology.'
'Next-generation semiconductors and computing systems are critical to the development of artificial general intelligence (AGI), and we're excited to collaborate with Graphcore on this mission,' said Vikas Parekh, managing partner at SoftBank Investment Advisers.
'We have agreed with SoftBank not to discuss the details of the transaction,' said Thun, declining to comment on the specifics of the contract or the acquisition price.
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