UK chipmaking startup Graphcore is facing financial difficulties and may need to secure significant financing in the coming months to stay afloat, according to its latest accounts. Despite the high demand for chips in the AI industry, Graphcore has not been able to capitalize on this growth. It was once considered a major rival to industry giants Nvidia and AMD, achieving a valuation of $2.5 billion in 2020. However, due to lower sales from key strategic customers, the company’s revenues have fallen.
Graphcore’s troubles were further highlighted when Microsoft, an investor in the company, decided not to continue using its chips in its cloud computing systems. The company now has less than a year to raise capital and is currently in discussions with potential investors for another funding round, as reported by the Financial Times (FT).
Meanwhile, OpenAI, another player in the AI market, is rumored to be exploring the development of its own AI chips instead of relying on Nvidia’s A100 GPUs. OpenAI has even identified potential acquisition targets to secure a supply of chips, as there is currently a shortage in the market. The company has also considered building its own chip and diversifying its supply beyond Nvidia, which currently dominates the market.
If OpenAI decides to invest in a chipmaking firm, Graphcore could be a suitable candidate. While there is no guarantee of such a partnership, an early investment in Graphcore could potentially pave the way for a larger collaboration in the future.
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