GPU pioneer Imagination up for sale, say reports

Business news | January 6, 2025

By Peter Clarke

Artificial Intelligence GPU Imagination IP Analog China

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Private equity company Canyon Bridge, the owner of Imagination Technologies Group Ltd. (Kings Langley, England), has instructed asset management firm Lazard to seek a buyer for the graphics pioneer, according to reports.

Imagination licenses semiconductor intellectual property, particularly graphics processing units (GPUs) used in mobile displays such as smartphones and automotive cockpits. Lazard has already received approaches, according to Bloomberg report.

Canyon Bridge although US based has strong connections with China the source of much of the money it has had under management. It acquired Imagination in 2017 but has been dogged by concerns over the movement of technology to China. The use of GPUs for AI not only makes Chinese access to the company problematic but also provides some potential value that Canyon Bridge might be able to realize.

Canyon Bridge paid US$681 million for Imagination in 2017.

A previous CEO of Imagination, Ron Black, has been vindicated by an employment tribunal that found he had been unfairly dismissed over protected disclosures about plans to move the company to China and concerns about Peter Kuo, a Canyon Bridge partner on Imagination’s board. Black is suing Imagination for US$220 million.

Up and down

Imagination has had a history of varied success. In part of its early-existence in the 1990s it was a leader in the licensing of GPU circuits as screens were added to a host of embedded equipment. In the 2000s it was in opposition to UK rival ARM which was developing its own GPUs to complement its processor IP offerings for mobile phones. A strategic involvement with Apple kept Imagination afloat and included Apple taking a stake in the company at one point.

However, in 2017 Apple went public on a decision to develop its own GPUs and dropped Imagination, a move that sent the UK company into a tailspin that was resolved by the Canyon Bridge buy out.

Since then the continuous ramping of restrictions on trade with China since 2017 is likely impacting Imagination’s revenue. There continues to be allegations that key technology has been transferred to Beijing.

Imagination has about 3,500 patents and a 650-engineer chip-design team. The company’s position as an expert GPU company potentially gives it some value. It’s IP could have a part to play as edge-AI and AI on smartphones, PCs and in consumer electronics are seen to be the next frontier in AI adoption.

The importance of GPUs to AI technology could mean that any of a large number of technology companies could be interested in Imagination, but also that antitrust regulatory bodies could slow down any acquisition.