Japanese conglomerate Softbank has acquired British AI chip firm Graphcore in a deal believed to be worth less than the company's 2020 valuation of £2bn. This acquisition raises concerns about the UK's ability to compete in the AI chip market against industry giants like Nvidia. Analysts view this deal as a blow to the UK's financial markets and its reputation as a global tech hub. Science Secretary Peter Kyle sees the acquisition as a positive outcome that brings certainty to Graphcore and its employees, but also highlights the need for the UK to create a better environment for business growth. Graphcore CEO Nigel Toon remains optimistic, stating that the deal demonstrates UK firms can compete with major tech players. He plans to continue leading the company and intends to expand its UK workforce. Graphcore will operate as a subsidiary under SoftBank, maintaining its headquarters in Bristol.