British AI Chipmaker Graphcore Faces Uncertain Future After Revenue Plunge and Mounting Losses

British AI chipmaker Graphcore was valued at $2.77 billion in 2020 but is now questioning its ability to continue operating due to widening losses.

Graphcore's revenue declined sharply after Microsoft decided not to use its chips, resulting in an 11% increase in pretax losses last year.

The company has cut jobs and exited some markets to reduce costs but still needs further funding to reach breakeven.

Graphcore is shifting strategy to focus on deploying its AI chips in cloud computing rather than companies' own data centers.

Competition from Nvidia's strong position in AI chips has deterred investment in startups like Graphcore seeking to challenge it directly.