UK-based artificial intelligence chip producer Graphcore secured $200m in series D funding at a $1.7bn valuation yesterday, in a round that included several corporate investors.
Carmaker BMW, industrial technology producer Bosch, computing equipment maker Dell, software provider Microsoft and electronics manufacturer Samsung all participated in the round, the first three through BMW i Ventures, Robert Bosch Venture Capital (RBVC) and Dell Technologies Capital.
The corporates were joined by venture capital firm Atomico, which led the round, as well as Merian Chrysalis Investment, Sequoia Capital, Sofina, Amadeus Capital Partners, C4 Ventures, Draper Esprit, Foundation Capital and Pitango.
Spun off from semiconductor technology producer Xmos in 2016, Graphcore has developed a processor and software specifically designed to be used for artificial intelligence, and it claims the hardware is 10 to 100 times faster than comparable products.
The company began manufacturing the systems earlier this year and has begun accelerating production in order to meet demand. It has also opened new offices in the UK, US and China in recent months.
Nigel Toon, Graphcore’s co-founder and chief executive, said: “Machine intelligence marks the start of a new age of computing which needs a radically different type of processor and software tools.
“This new, fast growing market creates the opportunity for Graphcore to build a major global technology company that can help innovators in AI achieve important breakthroughs.”
Graphcore has now raised $310m in total, securing $30m in a late 2016 series A round led by RBVC that included Samsung’s Catalyst Fund, Amadeus Capital Partners, C4 Ventures, Draper Esprit, Foundation Capital and Pitango.
The series A investors returned for a $30m series B round in July 2017 that was led by Atomico and also backed by Dell Technologies Capital, before Sequoia led a $50m series C four months later that included all its existing backers.
Goldman Sachs was placement agent for the latest round while Orrick, Herrington & Sutcliffe was legal adviser.
