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SoftBank Group (OTCPK:SFTBY) acquired British artificial intelligence chip manufacturer — Graphcore as Japanese tech enthusiast Masayoshi Son accelerates into the AI space.
Graphcore was established in 2016 by UK semiconductor veterans and will be included in SoftBank’s (OTCPK:SFTBY) portfolio alongside chip designer Arm.
Graphcore’s acquisition will be funded by SoftBank Group (OTCPK:SFTBY), rather than its Vision Funds, according to a report by the Financial Times.
“The piece that surprised us was the speed at which this has taken off, and the scale that is involved. This is a level of investment that is utterly massive,” commented Nigel Toon, co-founder and CEO of Graphcore.
The final deal amount was not disclosed. It could be just above $600M, FT reported, citing people familiar with the matter.
Graphcore — pitched as Intel (INTC), Nvidia (NVDA) potential rival has been struggling to commercialise its technology. The chipmaker’s primary problem is a lack of scalability and funding, according to Toon.
Graphcore’s investors valued the company close to $2.5B in 2020.
The company’s headquarters will remain in Bristol, with offices in Cambridge, London, Gdansk and Hsinchu.