British chip designer Graphcore, owned by SoftBank Group Corp., is set to announce a £1 billion ($1.3 billion) investment package in India, including plans for a new artificial intelligence research hub in Bengaluru. The announcement is expected to coincide with UK Prime Minister Keir Starmer’s visit to India this week, accompanied by a business delegation.
According to people familiar with the matter, the Bristol-based AI chipmaker will unveil plans to hire up to 500 employees over the next five years as part of its India expansion. Both Graphcore and SoftBank declined to comment on the upcoming announcement.
Graphcore, once seen as a promising rival to Nvidia, designs specialised processors for AI workloads. The company reached a valuation of $2.8 billion in 2020, but struggled commercially before being acquired by SoftBank in 2024 for an undisclosed amount. The acquisition aligned with SoftBank founder Masayoshi Son’s strategy to double down on AI infrastructure investments globally.
India, with its rapidly evolving AI ecosystem, has emerged as a key growth market for global technology firms. Industries such as agriculture, education, and manufacturing are adopting AI solutions to drive efficiency, while global players like Nvidia, Microsoft, and Meta have accelerated their local initiatives amid US-China trade tensions.
Prime Minister Narendra Modi’s government is also pushing to build a domestic semiconductor industry, backed by an $8.6 billion incentive fund for international chipmakers. While major global semiconductor giants are yet to make large-scale investments, projects such as Tata Group’s ₹11 billion fab unit with Powerchip Semiconductor Manufacturing Corp. and Micron Technology’s $3 billion assembly and testing plant are underway.
The new Graphcore research facility in Bengaluru is expected to deepen India’s position in the global AI supply chain and contribute to the country’s ambition of becoming a major AI and semiconductor hub.
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