SoftBank, the Japanese multinational, has officially acquired U.K. chip company Graphcore. While rumors of the acquisition have been circulating for some time, both companies have remained tight-lipped about the details. Speculation suggests that SoftBank paid around $500 million for Graphcore, but the company’s CEO, Nigel Toon, has denied this figure. Graphcore, founded in 2016, has developed a new type of processor called an “intelligence processing unit” (IPU), specifically designed for AI workloads. The company has raised $700 million in funding, with investors including Microsoft and Sequoia. Despite high hopes, Graphcore has faced challenges in the AI hardware market. It lost out on cloud deals with Microsoft and was not selected by the U.K. government for its computer plans. Additionally, export rules forced the company to exit the Chinese market. The acquisition by SoftBank provides Graphcore with the financial resources to compete in the AI hardware space. The U.K. company will remain headquartered in Bristol and expects to add to its workforce rather than making any layoffs. Graphcore’s co-founders and executives will also remain in their positions. While some former employees’ stock options were wiped out in the deal, Toon assures that it was a positive outcome for current employees and investors. The acquisition has already received regulatory approval, and Graphcore will operate as a wholly owned subsidiary of SoftBank. The future of Graphcore under SoftBank’s ownership is uncertain, but the company is expected to play a significant role in SoftBank’s AI ambitions.