
Sensible move
Yeah, I don't quite see RISC-V as a competitive replacement for beefy workhorse CPUs in anything from smartphones to datacenters, but rather as a new version of the Transputer that can meet its original goal of making "CPUs so small and cheap that they could be combined with other logic in one device", particularly suited for dataflow-amenable and parallelizable workloads (with reconfigurable networking).
I think that's what Esperanto, SiFive, Tenstorrent, and others (eg. Untether ...) have been (rightly) shooting for with this arch.
There's a lot of competition and a risk of fragmentation in this space imho, and so if Codasip is currently in a solid position that allows it to sell itself at a profit, then why not do it (rather than wait for some other outfit to steal its thunder). The part of it that is funded by DARE has to stay in the EU anyways, so the Codasip sale may end up coalescing EU development efforts under fewer more capable units rather than many smaller ones that compete against each other for attention and funds.
Eventually, it's the international competition that has to be considered (with US, China, Japan, UK ...) and for that, joining forces within the EU may be best indeed, imho! (if that's what ends up happening)