Graphcore raises $222 million in bid to compete with Chipmaking Giants

British semiconductor company Graphcore has announced on Tuesday that it had raised investments worth $222 million as it looks to compete with U.S rivals Nvidia and Intel.

The Series E funding round comes less than a year after the UK based chip maker raised a $150 million extension to its last round. Graphcore informed that it would use the funding to work towards global expansion and speed up its Intelligence Processing Units (IPUs). The IPUs are specifically designed to power AI software. The company, which now values at $2.77 billion, up from $1.5 billion in 2018, has already shipped tens of thousands of its chips to customers including Microsoft and Dell.

Graphcore CEO and co-founder Nigel Toon told CNBC in July: “We’re now at the point where we’re not really looking for venture investors in the business. We’re more interested in companies that would be long term investors and holders of the stock, perhaps, in the public markets, if we ever reach that point.”

Total investment now stands at $710 million in Graphcore and the company has $440 million of cash on hand.

According to CNBC, the latest funding round was led by the Ontario Teachers’ Pension Plan Board, and other new investors reportedly included venture capital investor Draper Esprit, private equity investor Baillie Gifford, and funds managed by Fidelity International and Schroders.

Toon said in a statement on Tuesday: “Having the backing of such respected institutional investors says something compelling about how the markets now view Graphcore. The confidence they have in us comes from the competence we have demonstrated in building our products and our business.”

He added: “We have created a technology that dramatically outperforms legacy processors such as GPUs, a powerful set of software tools that are tailored to the needs of AI developers, and a global sales operation that is bringing our products to market.”

In spite of the disruption caused by the coronavirus pandemic, Graphcore launched its second-generation IPU earlier this year.

Serial chip entrepreneurs

Graphcore raises $222 million to scale up AI chip production
Graphcore co-founders. Image: Elmoudjaweb

Founded in June 2016 by Toon and Simon Knowles, the idea of Graphcore came to the pair in a small pub in January 2012. Today, the company employs around 450 people in the UK, China, Taiwan, and the US. The number is expected to grow to about 600 by 2021 end.

But the rapid growth hasn’t come cheap; according to an annual report filed on U.K. business registry Companies House, Graphcore made a pre-tax loss of $95.9 million on revenues of $10.1 million in 2019.

US chipmaking giants Intel and Nvidia are two of the obvious front runners in the AI chip market, given their long run and expertise in chip making. In 2019, 15.7% of Intel’s overall chip sales were made, and it had led the market each year since 2008 except for 2017 (when Samsung won the race for the year). 

Some of the big companies working on their own AI chips include Google, Amazon, and Apple.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More like this

DLSS 4 Multi Frame Generation Transforms Performance in The FINALS, Enotria, and Wild Assault

DLSS 4 Multi Frame Generation Transforms Performance in The...

The gaming world is witnessing a performance revolution this week as NVIDIA’s cutting-edge DLSS 4 with Multi...

Best Features of iOS 18.4 in Apple’s Latest Update

Apple’s iOS 18.4 update is finally here, and it’s packed with meaningful upgrades across core apps and...

Google Play Redeem Codes for FREE Today, April 8...

Google Play Redeem Codes as of April 8, 2025: All You Need to Know   Google Play, commonly referred...
AMD

AMD Surges Ahead in 2025: Gains 16.6% CPU Market...

In a dramatic shift in the CPU landscape, AMD has pulled off one of its biggest wins...

Google Pixel 10 Series Camera Leak Reveals Upgrades and...

A recent leak has revealed key camera specifications for the Pixel 10, Pixel 10 Pro, Pixel 10...

LATEST NEWS

DLSS 4 Multi Frame Generation Transforms Performance in The FINALS, Enotria, and Wild Assault

The gaming world is witnessing a performance revolution this week as NVIDIA’s cutting-edge DLSS 4 with Multi Frame Generation technology arrives in three exciting...

Marvel Rivals: How to Get The Unlimited Thing Skin Completely Free Through April 16

Marvel Rivals has quickly established itself as a competitive force in the hero shooter genre, bringing beloved characters from the Marvel universe into intense...

PBKS vs CSK Dream11 Prediction: Best Fantasy Picks and Team Lineup for IPL 2025 Clash

The Indian Premier League's 2025 season Dream11 continues to deliver thrilling cricket action as Punjab Kings prepare to host Chennai Super Kings at the...

Breaking: OnePlus’ Next Tablet in India has Just Leaked

OnePlus fans, get ready for some exciting news that just dropped! While you’ve been waiting for the next big thing from your favorite tech...

Featured