The bank has not revealed the amount it paid, however it is believed to be a significant amount less than the £2 billion that the UK company was estimated to be worth following a funding round in 2020.
The news was informed by Graphcore CEO Nigel Toon that it was “a tremendous endorsement of our team”.
The agreement will probably make people wonder if the UK can produce businesses strong enough to compete with the largest names in the rapidly expanding AI chip industry.
Softbank had already purchased a promising UK startup; in 2016, it controversially purchased Arm, another British chip designer.
Technology analyst Ben Barringer of Quilter Cheviot described Graphcore’s move as “another bitter blow” to the UK financial markets.
“It comes at a time when London is looking for a blockbuster tech listing to reinvigorate its reputation as a global financial centre,” he stated.
The agreement, according to Science Secretary Peter Kyle, represents a “welcome end to the uncertainty that has faced Graphcore and its employees.”
He acknowledged, however, that it served as a “reminder of the important work that needs to be done” in order to establish the UK as “the best place to start and grow a business.”
