SoftBank-owned Graphcore is planning a significant expansion into India, with a proposed investment of $1.3 billion. The UK-based chip designer intends to establish a new artificial intelligence (AI) research center in Bengaluru as part of this initiative. This move signifies a major commitment to India's rapidly growing technology market and aims to strengthen Graphcore's position in the global semiconductor industry.

The announcement comes as part of a larger UK business delegation, highlighting the increasing importance of collaborations between the two nations in the technology sector. The investment reflects the growing interest of global tech firms in India, driven by the country's push to develop its own domestic semiconductor industry.

Graphcore's investment will be used to create a state-of-the-art AI research center in Bengaluru. The company plans to hire up to 500 employees in India over the next five years for this hub. These teams will focus on developing Intelligence Processing Units (IPUs), specialized chips designed to accelerate AI tasks. This investment signals Graphcore's intent to capitalize on the expanding opportunities within India's AI landscape.

SoftBank acquired Graphcore in 2024 after the chipmaker faced challenges in gaining commercial traction as a potential competitor to Nvidia. Since the acquisition, Graphcore has announced plans to expand hiring and invest further in AI hardware. This investment in India demonstrates SoftBank's commitment to supporting Graphcore's growth and strengthening its position in the global semiconductor market.

The investment by Graphcore has been welcomed as a boost to India's ambitions in the semiconductor industry. While India has been attracting attention from global tech firms, significant foreign investment in chip manufacturing has remained limited. Graphcore's $1.3 billion investment could pave the way for further investments in the sector, supporting the development of a robust domestic semiconductor ecosystem.

The news of Graphcore's investment contributed to a surge in SoftBank's shares, reflecting positive market sentiment towards the company's aggressive expansion into artificial intelligence. The investment giant also announced a $5.4 billion deal to acquire the robotics unit of Swiss engineering firm ABB, further solidifying its position in the AI and robotics space.