Japanese conglomerate Softbank has acquired British AI chip firm Graphcore, once considered a rival to leading company Nvidia. While the exact amount paid remains undisclosed, it is believed to be significantly less than the £2bn valuation by Graphcore in 2020. Graphcore CEO Nigel Toon expressed that the acquisition was a strong validation of the team's capabilities. However, this deal raises concerns about the UK's ability to develop firms that can compete with major players in the rapidly growing AI chip market. This is not the first time Softbank has acquired a promising UK start-up, following its controversial purchase of British chip designer Arm in 2016.

The acquisition of Graphcore has been seen as another setback for UK financial markets, as the country seeks a high-profile tech listing to revitalize its global financial center reputation. While Science Secretary Peter Kyle welcomed the deal, he acknowledged the need for further efforts to make the UK an attractive environment for starting and growing businesses. Toon believes that the deal demonstrates UK firms' ability to compete with tech giants, highlighting that Graphcore has successfully challenged industry leaders with fewer resources. He confirmed his continued position as CEO and mentioned that the acquisition would lead to the hiring of new staff for the company's UK offices. The company will now operate as a subsidiary of SoftBank while retaining its headquarters in Bristol.