SoftBank-owned Graphcore to invest $1.3 billion in India, set up AI research hub in Bengaluru

Core Insights - Graphcore, a British chip designer owned by SoftBank, is set to announce a £1 billion ($1.3 billion) investment in India, which includes establishing a new research hub [1][2] - The investment announcement coincides with a UK business delegation led by Prime Minister Keir Starmer visiting India [2] - Graphcore plans to open a research facility in Bengaluru and aims to hire up to 500 employees over the next five years [2] Company Overview - Graphcore was initially seen as a potential competitor to Nvidia, focusing on specialized chips for artificial intelligence [3] - The company was valued at $2.8 billion in 2020 but has faced challenges in gaining commercial traction [3] - SoftBank acquired Graphcore in 2024 as part of its strategy to leverage the growing demand for AI infrastructure [5] Industry Context - India is emerging as a significant player in the AI sector, with a population of 1.4 billion adopting AI across various industries [6] - Global tech companies, including Nvidia and Microsoft, view India as a growth market, especially as an alternative to China [6][8] - The Indian government has initiated a ₹76,000 crore ($8.6 billion) fund to attract international chipmakers, although major investments have yet to materialize [9]