British chipmaker Graphcore is reportedly exploring a sale to foreign buyers after struggling to reap the rewards of the boom in artificial intelligence.
The Sunday Telegraph reported that the Bristol-based firm has been in talks over a possible deal with major tech companies to cover heavy losses, citing unnamed industry sources.
Graphcore has failed to successfully cash in on the exploding market for AI chips despite large spending. The company has also grappled with the closure of its Chinese business over US chip controls.
The firm, most recently valued at $2.8bn in late 2020, said last year that it needed new funding to offset revenues plunging 46 per cent.
Graphcore has made job cuts and closed offices abroad as part of efforts to reduce costs.
Meanwhile, rival AI giants have seen their valuations soar this year, with Nvidia becoming one of the world’s biggest companies by market capitalisation last week, hitting $1.8trn.
The paper named the UK’s Arm, Japan’s Softbank and the US’ OpenAI as rumoured potential buyers for Graphcore. None of the companies have commented on the matter.
The deal could be worth over $500m (£397m), the paper said, based on how investors are said to be heavily marking up the value of their stakes. Investment manager Baillie Gifford has more than doubled the valuation of its stake in Graphcore.
Graphcore and Baillie Gifford declined to comment when approached by City A.M.