SoftBank Acquires AI Chip Firm Graphcore for $500 Million, Boosts UK Tech Ecosystem

SoftBank has acquired British AI chip firm Graphcore for $500 million.

The acquisition provides Graphcore with resources to compete globally in the AI chip market.

Graphcore will continue to operate as a subsidiary under its current name.

Significant growth is expected in Graphcore’s UK team.

Investors holding preference shares will receive a payout.

The acquisition follows challenges Graphcore faced in commercial traction and strategy, leading to a decline in valuation.

SoftBank views Graphcore as a strategic addition for AI advancements.

The deal underscores the need for improved investment in the UK tech ecosystem to support high-growth startups.