SoftBank Group, based in Japan, has acquired Graphcore, a prominent player in the AI chip market, in a move expected to redefine the landscape of artificial intelligence hardware. The acquisition, finalized for an undisclosed sum, resolves uncertainty surrounding Graphcore’s future and positions it to challenge industry leaders like Nvidia.

Graphcore, once valued at $2.77 billion by the end of 2020, faced financial challenges and workforce reductions before the acquisition. CEO Nigel Toon highlighted the transformative potential of SoftBank’s investment, emphasizing the newfound scale and resources that will enable Graphcore to expand globally.

“To compete at this level requires massive investment,” stated Toon, acknowledging Graphcore’s ability to innovate despite its smaller size compared to competitors.

Toon will continue to lead Graphcore, aiming to leverage SoftBank’s extensive portfolio, including Arm Holdings, for strategic collaborations. The acquisition underscores ongoing consolidation within the AI chip sector, emphasizing Graphcore’s pivotal role in advancing AI technology on a global scale.

The deal marks a significant milestone for British technology and addresses challenges in funding startups, particularly from British pension funds. Toon expressed optimism about overcoming these structural hurdles to foster future growth and innovation in the UK tech ecosystem.