Deep Tech Briefing #20: 🤖 AI chip startup exit; 🌐 Microsoft Backs Edge Computing; 🛰️ AI in Satellite Management; 🛡️ 'Last Mile’ of Security Operations'; 💧Desalination Tech Breakthrough
An insider’s update on Deep Tech Economy: Your dose of tech innovations, startups, exponential industries, policies, and market moves to stay ahead and capitalize on it.
Hey there! Welcome to this edition of Deep Tech Briefing, our Sunday column where we break down the week’s top developments in Deep Tech Startups and Venture Capital.
In today’s edition
Landmark exit in AI chip industry with high-value acquisition
Innovative cybersecurity solution targets operational gaps
AI fuels growth in satellite operation automation
Edge computing advancements attract major investment
Breakthrough in desalination tech captures investor attention
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🔸 SoftBank's Acquisition of British Startup Graphcore: A Game-Changer in the AI Industry?
The recent acquisition of British AI chip startup Graphcore by Japanese tech giant SoftBank Group is a significant milestone in the ever-evolving AI landscape. According to TechCrunch terms of the deal weren’t disclosed, but Graphcore CEO Nigel Toon says it’s a positive outcome (for most) and it aims to leverage Graphcore's pioneering intelligence processing units (IPUs) to propel SoftBank’s ambitions in the AI and semiconductor sectors.
Graphcore, founded in 2016 and headquartered in Bristol, UK, has gained a stellar reputation for its IPU technology. Unlike traditional GPUs, IPUs are specifically designed for AI workloads, featuring a unique architecture that excels in processing large-scale parallel operations and complex machine learning models. This technology stands out by delivering a 40% performance improvement with advanced wafer-on-wafer technology, setting Graphcore apart in a market dominated by Nvidia.
With the AI industry growing at an unprecedented pace, the demand for efficient and powerful AI chips has never been higher. Grapshcore's IPUs, now backed by SoftBank's vast resources, are set to revolutionize AI computing, driving advancements in generative AI applications, scientific discovery, and beyond.
Vikas J. Parekh, Managing Partner at SoftBank, remarked, “Next-generation semiconductors and compute systems are essential in the AGI journey; we’re pleased to collaborate with Graphcore in this mission.”
Of course, this journey isn't without its twists and turns. While the increased investment will enable Graphcore to scale its operations, enhance product development, and expand its market reach, the competition, particularly with Nvidia, is fierce. Additionally, regulatory scrutiny and geopolitical tensions, especially concerning U.S. export restrictions, could impact market strategies.
The AI chip market is on the brink of substantial growth. Deloitte forecasts specialized chips for generative AI to reach