Abrupt!Nvidia's rival made a large layoff!

The latest news is that Graphcore, a British chip design company, will lay off most of its employees in China and stop sales in China.This marks another setback for the startup, which was once seen as a potential rival to NVIDIA.

Graphcore confirmed the decision, citing the recent escalation of U.S. export controls to China."Unfortunately, this means that we will significantly reduce our business operations in China," a spokesperson said in an email.The company declined to disclose the number of affected employees.

According to the data, Graphcore, a British AI chip unicorn, was founded in 2016 and produces artificial intelligence (AI) chips called intelligent processor units (IPUs), aiming to challenge NVIDIA.Due to the high demand for NVIDIA's equipment, investors have poured funds into this start-up company to find a feasible alternative to NVIDIA.In 2020, Graphcore raised $222 million at a valuation of $2.8 billion, making it one of the most promising start-ups in the UK.

However, Graphcore has been struggling to gain commercial appeal.According to the latest filing, the company's revenue fell 46% to $2.7 million in 2022, and its loss expanded by 11% to $204.6 million.In October this year, Graphcore disclosed its forecast for 2027, saying that it would need to raise more funds to achieve balance of payments.The company is in financing negotiations with investors, but has not yet reached an agreement.

Nvidia's dominance in the field of artificial intelligence makes it more difficult for startups to obtain capital, as investors are less willing to make large bets on companies that are in direct competition.

Graphcore CEO Nigel Toon previously pointed out that China is a potential growth market, especially because the ban limits Nvidia's ability to sell products in China.At a technology conference held in London in October this year, Nigel Toon said that sales from China "may account for 20% to 25% of its business".

According to the report, the document shows that Graphcore has previously closed its operations in Norway, Japan and South Korea, and reduced its business in other countries.The previous document said that the number of employees had dropped to 494, a decrease of 21% compared to the same period last year.

*Disclaimer: This article is sourced from Semiconductor Industry Insights and Jiwenwang. The information has not been officially confirmed and is for exchange and learning purposes only.