In 2017 it was looking so promising: "Sequoia Backs Graphcore as the Future of Artificial Intelligence Processors" (NVDA; INTC).
From Bloomberg, May 8:
- Ongoing discussions with SoftBank have become more advanced
- British semiconductor startup was once valued at $2.8 billion
SoftBank Group Corp. is in talks to acquire Graphcore Ltd., a struggling British semiconductor startup once valued at $2.8 billion, according to people familiar with the deals.
The two companies have held discussions over several months but entered into more advanced deal talks recently, said the people, who asked not to be identified discussing private matters. Financial terms haven’t yet been decided and the talks could still unravel, they said. A final agreement isn’t imminent, one person said.
The talks come amid a surge in sales for SoftBank, thanks largely to its majority stake in another UK-based chip designer, Arm Holdings Plc. On Feb. 7, Arm reported a strong outlook for its expansion beyond smartphones into more artificial intelligence applications. Arm shares have soared by about 40% since.
SoftBank didn’t immediately respond to requests for comment. A representative for Graphcore declined to comment.
Graphcore works on a different type of chip technology than Arm. Formed in Bristol in 2016, the company develops designs for large “intelligence processing units,” meant to help with AI software processing inside data centers. The startup touted its product as a rival to Nvidia Corp.’s high-end graphics chips, and secured high-profile investors including Samsung Electronics Co., Bosch and Sequoia Capital. A 2020 financing round valued Graphcore at $2.8 billion....
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