Observed Signal · Apr 11, 2023 · Financials · Source: Trending Topics · Impact: 3/5 · Sentiment: Negative
Sequoia Writes Off Graphcore Stake, Devaluing British AI Chip Unicorn
British AI chip startup Graphcore has suffered a major setback after its major investor Sequoia Capital wrote its entire stake in the company down to zero. Founded in 2012/2013 by Nigel Toon and Simon Knowles, Graphcore has raised nearly $700 million in venture capital to develop its Intelligence Processing Units (IPUs) as a European challenger to Nvidia. Sequoia first invested in 2017 during a $50 million funding round. Graphcore had also partnered with Taiwanese semiconductor manufacturer TSMC and was repositioning its IPUs for generative AI applications following the ChatGPT hype. Meanwhile, CEO Nigel Toon publicly criticized the UK government's £900 million Exascale program, urging Prime Minister Rishi Sunak to reserve part of the budget for British suppliers such as Graphcore. Commentator Michael Jackson of Multiple Capital said the write-off raises serious questions about the viability of European deep tech and its access to local funding and customers.
Sequoia's total write-down of Graphcore underscores the financial distress of a prominent European AI chip startup that raised nearly $700 million, signaling consolidation risk in AI hardware and raising concerns about European deep tech competitiveness against Nvidia.
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Key Takeaways & Evidence Grounding
- Sequoia Capital wrote its entire stake in Graphcore down to zero.
- Graphcore has raised nearly $700 million in venture capital since its 2012/2013 founding.
- Sequoia Capital participated in a $50 million funding round for Graphcore in 2017.
- Graphcore CEO Nigel Toon urged the UK government to reserve part of its £900 million Exascale budget for British suppliers.
- Graphcore partnered with TSMC and positioned its IPUs for generative AI use cases.
Connected Companies & Entities
7 Entities mapped“Der Großinvestor Sequoia Capital hat den Wert seiner Beteiligung an dem 2012/2013 gestarteten Halbleiterunternehmen Graphcore auf Null zu re...”
“Mit ihren Intelligence Processing Units (IPUs) galten sie eigentlich als der große europäische Herausforderer des US-Chip-Riesen Nvidia im A...”
“Dabei hatte das Startup aus Bristol in Großbritannien sogar den weltweit führenden Halbeiterhersteller TSMC aus Taiwan an seine Seite gebrac...”
“Der Bereich von Künstlicher Intelligenz, der Content aller Art generieren kann, ist im Zuge des Hypes rund um ChatGPT von OpenAI stark in de...”
“Der Verweis auf ARM ist interessant, und zwar in zweierlei Hinsicht. Die renommierte Chip-Firma aus UK hat schon ihre eigenen Kämpfe hinsich...”
“ARM wird von Mehrheitseigentümer Softbank aus Japan nun an die Börse gebracht, allerdings nicht in London, sondern in New York....”
“Hauser ist via Amadeus Capital Partners seit vielen Jahren an Graphcore beteiligt....”
Ontology Mapping & Concepts
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