Nvidia Rival AI Chip Firm Graphcore, Acquired by Japanese Firm

Nvidia's artificial intelligence chipmaking rival Graphcore has reportedly been acquired by Japanese giant Softbank for an undisclosed amount.

Sources imply that Graphcore was bought for considerably less than £2 billion, the UK company's value after a financing round in 2020.

However, the transaction will likely raise concerns about the UK's capacity to produce enterprises capable of competing with the top players in the thriving AI chip industry. Softbank had already bought a potential UK start-up; in 2016, it controversially acquired Arm, another British chip creator.

Ben Barringer, a technology analyst at Quilter Cheviot, describes Graphcore's intention to follow suit as "another bitter blow" to UK financial markets. The Science Secretary, Peter Kyle, described the agreement as a welcome conclusion to Graphcore and its staff's uncertainty.

However, he acknowledged that it served as a reminder of the critical work that still needs to be done to make the United Kingdom the finest environment for starting and developing a business.

Mr. Toon claimed the acquisition demonstrated that UK firms could contend with big tech, arguing that Graphcore competed with the top companies in this field despite having a considerably smaller workforce and far less funding.

UK Adoption of AI

Graphcore's purchase comes after research found that confusing rules reportedly hamper the adoption of AI in the UK. Freshworks discovered that 65% of UK company executives believe AI can significantly value their operations. However, 35% see unclear legislation as impeding further AI integration.

This regulatory ambiguity challenges organizations seeking to deploy AI. It hinders development and the possible benefits of AI in various industries.

Freshworks discovered that the average leader in the UK saves more than three hours per week utilizing AI technology, with 11% saving more than nine hours, equivalent to an entire workday. UK business leaders have been vocal about the need for clearer AI guidelines.

According to reports, despite these time-saving benefits, over 37% of UK executives do not want to adopt AI into their workplaces owing to regulatory difficulties. This fear is more prevalent among British respondents than among their overseas counterparts.

Even those researching AI technology anticipate a conservative approach, with a one to two-year timeframe before realizing economic benefits. Indeed, this reluctance emphasizes the need for clearer legislative frameworks to boost trust in AI deployment.

Continued AI Chip Boom

However, demand for AI chips continues to rise, with Taiwan Semiconductor Manufacturing Company (TSMC) recently joining the elite group of firms worth more than a trillion dollars.

This milestone shows the disruptive influence of the generative AI boom on global markets. TSMC, which is listed in Taiwan and New York, momentarily exceeded the trillion-dollar threshold on Monday, surpassing Tesla and becoming the eighth most-valued tech company.