SoftBank is rumored to be planning to acquire British AI chip company Graphcore

Bloomberg reported on Wednesday (8th), citing people familiar with the matter, that SoftBank was in talks to acquire Graphcore Ltd., a troubled British semiconductor startup, which had once valued it at US$2.8 billion.

Bloomberg reported on Wednesday (8th) that SoftBank was in talks to acquire Graphcore Ltd., a troubled British semiconductor startup, valuing it at $2.8 billion, citing people familiar with the matter.
People familiar with the matter said the two companies had been in discussions for months but only recently entered deeper deal talks.
Final financial terms have not yet been determined, and there is still a chance that talks may collapse and a final agreement may not be reached anytime soon.
The talks come as SoftBank\’s revenue surges, thanks in large part to its majority stake in Arm Holdings, another UK-based chip designer.
On February 7 this year, Arm said it had strong prospects for expanding into more artificial intelligence (AI) applications beyond smartphones. Arm\’s share price soared by about 40%.
SoftBank did not respond to a request for comment by deadline and a representative for Graphcore declined to comment.
It is understood that Graphcore uses a different chip technology than Amou.
The company was founded in Bristol, UK in 2016 to develop and design large-scale \”smart processing chips\” to help AI software processing within data centers.
The startup bills its product as a competitor to NVDA\’s (NVDA-US) high-end graphics chips (GPUs) and has secured high-profile investors including Samsung Electronics, Bosch and Sequoia Capital. favor.
A 2020 funding round valued Graphcore at $2.8 billion.
But Graphcore has struggled to gain traction since then and has been hurt by slowing hardware sales.
According to Graphcore’s latest financial report, the company’s revenue in 2022 will be only $2.7 million, a 46% annual decrease.
Pretax losses widened to $204.6 million.
The company said in the filing that it has closed operations in Norway, Japan and South Korea and will reduce headcount in other markets.
The company also said it needed to raise more capital to remain a \”going concern.\”
Bloomberg reported in February that the talks with Graphcore came as SoftBank Chief Executive Masayoshi Son was seeking to raise about $100 billion to fund an AI chip business.
The Japanese giant signaled a return to trading late last year after SoftBank paused its rapid investment in the technology sector in 2022, making several bets in AI and autonomous driving in what Son described as a strategy centered on Arm\’s business.
The Financial Times (FT) reported last September that SoftBank had made a preliminary takeover bid for Graphcore but the startup denied the proposal.
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