SoftBank Group has announced the acquisition of the British chip manufacturer Graphcore, furthering its extensive investment in artificial intelligence. The deal, which still requires approval from UK authorities, has not disclosed financial details. However, the BBC speculates the purchase may be valued at under £2 billion (€2.374 billion).
Graphcore will retain its name and continue operations from its headquarters in Bristol, UK, alongside offices in Cambridge, London, Gdansk (Poland), and Hsinchu (Taiwan). This acquisition is part of SoftBank's strategy to expand its presence in the tech sector and enhance its portfolio of innovative AI companies.
This move is not SoftBank's first foray into the chip industry. In 2016, the Japanese conglomerate controversially acquired chip company Arm, which produces components for tech giants like Apple and Samsung. The Arm acquisition, valued at over £24 billion (€28.494 billion), stirred controversy due to the strategic importance of the company in the tech industry.
More recently, in May of this year, SoftBank invested approximately €1.5 billion in Wayve, a British startup developing autonomous vehicles. This investment underscores SoftBank's intent to lead in AI and autonomous driving technologies.
The purchase of Graphcore fits into a global trend of consolidation in the tech industry, particularly in the semiconductor sector, where competition and demand for advanced chips are continually rising. Through its Vision Fund, SoftBank has been a key player in this trend, investing in various startups and tech companies to stay at the forefront of innovation.
Graphcore, known for its Intelligence Processing Units (IPUs), specializes in chips designed specifically for AI and machine learning tasks. This specialization makes Graphcore a strategic addition to SoftBank's growing AI portfolio. The company's technology is aimed at accelerating machine learning applications, providing increased performance and efficiency compared to traditional processors.
The acquisition of Graphcore by SoftBank is expected to drive further advancements in AI technology, enabling more efficient processing of complex AI algorithms. This, in turn, could lead to significant developments in various fields, including healthcare, automotive, and finance, where AI is increasingly being integrated.
Approval from UK authorities will be crucial for SoftBank to fully integrate Graphcore into its AI strategy. Meanwhile, the market keenly anticipates the next moves of the Japanese conglomerate in its quest to dominate the tech sector.
