AI chip startup Graphcore is in need of new funding to offset its mounting losses. The company has been seen as a potential competitor to Nvidia in the AI accelerator space with its Intelligence Processor Unit (IPU) hardware and associated software. However, Graphcore reported a loss of $204.6 million for the previous financial year, primarily due to increased operating costs, particularly in research and development. The company expects further losses in 2023 as it continues to invest in product development. Despite these challenges, Graphcore remains optimistic and has prepared a cashflow forecast indicating the need for additional funding before reaching a cashflow break-even point. The company is currently in discussions with potential investors to secure the necessary funds. Graphcore’s technology has received positive reviews and it has raised over $600 million from investors. However, Nvidia’s GPUs continue to dominate the market. In the meantime, Graphcore plans to focus on increasing IPU adoption, particularly through cloud services, and expanding its ecosystem and research and development efforts. In related news, OpenAI, the company behind ChatGPT, is considering making its own AI chips to address a shortage in the market.