SoftBank Group of Japan bought Graphcore for an unknown amount, settling long-term speculation about its future
Graphcore, a British company, was previously considered a competitor to Nvidia, which has experienced a significant increase in its valuation due to the increasing demand for AI computer processors. However, it has yet to secure the necessary investment to remain competitive.
After 2020, Graphcore was valued at $2.77 billion. However, a filing from the previous year indicated that the company required additional capital to achieve profitability.
This was because the company had reduced its workforce by 50% to 494 employees and had ceased operations in Norway, Japan, and South Korea.
Nigel Toon, the cofounder and CEO of Graphcore, stated at a media briefing on Thursday that the SoftBank transaction would equip the company with the necessary resources to compete globally. However, he also acknowledged that the company had encountered challenges.
“The piece that surprised us was the speed at which this has taken off and the scale involved,” according to Toon.
“This is an investment that is truly substantial.” Graphcore, a relatively small company compared to its competitors, has successfully developed world-class technology on par with its offerings.
Toon, who will continue in his position, declined to answer when queried about the amount of money SoftBank had spent on the company.
Toon identified the historical reluctance of British pension funds to invest in fast-growing startups as a constraint to development when contemplating the state of the British tech industry.
“There’s a massive opportunity here, but a lot of structural things still need to be fixed,” said the representative.
“When you examine the source of our funding, a portion of it originated in the United Kingdom, but the majority originated in other regions.” That is the reality and the component we will need to address in the future.
Toon stated that Graphcore would collaborate with partners from across its parent company’s portfolio when queried about collaborating with Arm Holdings, the dominant chip designer that SoftBank also owns.
