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Graphcore Withdraws from China Due to the Impact of US Export Controls

November 24, 2023
in Technology
Graphcore Withdraws from China Due to the Impact of US Export Controls
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On November 23rd, Graphcore, the AI chip unicorn known as ‘British Nvidia’, faced another setback. The company will lay off most of its Chinese employees and halt sales in China.

Graphcore has confirmed its decision to cease sales in China, citing the recent export control regulations imposed by the United States as a reason for restricting the company’s technology sales to China. ‘Unfortunately, this means we will significantly reduce our business in China,’ said a Graphcore spokesperson in an email, without disclosing the number of affected employees.

Prior to this, Graphcore CEO Nigel Toon regarded China as a potential growth market, especially after Nvidia’s sales were restricted in China. In October of this year, Toon stated at the Bloomberg Technology Conference held in London that sales from China could account for ‘20% to 25%’ of his company’s business.

Graphcore was founded in 2016 and specializes in designing semiconductors that support AI software. However, now Graphcore is facing difficulties. The company’s latest filings show a 46% decrease in revenue and an 11% increase in losses to $204.6 million in 2022. In October of last year, Graphcore disclosed the need to raise funds to sustain its operations. Since then, Graphcore has not announced any financing news.

SEE ALSO: Chip IP Company Imagination Lays Off 20%, Involving the Chinese Market

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