Tiny AI chip designer could become Arm’s sibling – Softbank rumored to be interested in buying cash-strapped Graphcore with its IPU crown jewel likely to be the target

Graphcore, a UK-based AI chip designer that was once considered a potential rival to Nvidia, is now exploring a sale after struggling to capitalize on the AI boom.

Despite substantial funding, including over $700m from investors such as Microsoft and Sequoia, the company’s revenue fell by 46% last year, and losses have since widened. The company has been unable to compete with Nvidia’s graphics processing units, which have seen soaring demand during the AI revolution.