SoftBank has acquired semiconductor manufacturer Graphcore. Under the deal, Graphcore becomes a wholly owned subsidiary of SoftBank and will continue to operate under the Graphcore name.

Founded in 2016, Graphcore has created a new processor, the Intelligence Processing Unit (IPU), specifically designed for artificial intelligence. The IPU’s unique architecture means developers can run current machine learning models orders of magnitude faster. More importantly, it lets AI researchers undertake entirely new types of work, which is not possible using current technologies, to drive the next great breakthroughs in general machine intelligence. The company has raised over $620 million.

“This is a tremendous endorsement of our team and their ability to build truly transformative AI technologies at scale, as well as a great outcome for our company,” said Graphcore co-founder and CEO Nigel Toon. 

“Demand for AI compute is vast and continues to grow. There remains much to do to improve efficiency, resilience, and computational power to unlock the full potential of AI. In SoftBank, we have a partner that can enable the Graphcore team to redefine the landscape for AI technology.”

“Society is embracing the opportunities offered by foundation models, generative AI applications and new approaches to scientific discovery”, said Vikas J. Parekh, Managing Partner at SoftBank Investment Advisers.

 “Next generation semiconductors and compute systems are essential in the AGI journey, we’re pleased to collaborate with Graphcore in this mission.”

Graphcore’s headquarters remain in Bristol, with offices in Cambridge, London, Gdansk and Hsinchu. That said, while Japanese company Softbank might have an interest in keeping Graphcore’s European base operational, but it’s not guaranteed and would have a signficant impact on European semiconductor manfuacturing.