Graphcore Ltd,a UK microchip maker,may be selling itself to foreign investors, following two fundraising rounds that did not work. When it is taken into consideration that the company raised more than $ 700 million up until now and that its late 2020 valuation was estimated at 2.8 billion dollars, it seems that its revenues declined and losses increased.
However,Graphcore’s problematic history is tied up with many aspects. Acer is up against tough competition from Nvidia, whose GPU’s are sought after in AI applications. Meanwhile, US’s policy forbids the sale of AI technology to China has led to the closure of business in China, leaving a huge gap in sales revenue. Also adding to the company’s difficulties, they have been finding it hard to raise new capital which keeps the company from competing to its full potential.
In view of the difficulties implied Graphcore is considering a possibility of a sale to foreign investors. Potential buyers of these assets include the names of tech giants like Arm, SoftBank, and Open AI – the company that created ChatGPT. Nevertheless, it is doubtful that any such deal would pass the national security officials who are interested in how important AI may be for the world.
Also read: Bitcoin Mining Difficulty Hits Record High Ahead of Halving
This news is republished from another source. You can check the original article here