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Tenstorrent Raises $1.5B at $6.2B Valuation for AI Chips

Tenstorrent raises $1.5B at a $6.2B valuation, rejecting Intel and Qualcomm to scale open-weight AI chips and challenge Nvidia's dominance in hardware.

KoishiAI · Editor: เกียรติดำรง ตรีครุธพันธ์ · · 3 min read
AI-drafted from cited sources, fact-checked against them by an automated pipeline, and read by a human editor for clarity. How we work · Standards · Report an error
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TL;DR: Tenstorrent secured $1.5 billion at a $6.2 billion valuation to scale open-weight AI chips, rejecting acquisition offers from Intel and Qualcomm. This strategic independence positions the company as a major challenger to Nvidia’s dominance in the AI hardware market.

Key facts

  • Tenstorrent closed a $1.5 billion funding round at a $6.2 billion valuation, more than doubling its previous $2.6 billion valuation from late 2024.
  • The company rejected acquisition offers from Intel and Qualcomm, which had valued the startup at up to $5 billion five months prior.
  • Led by Trace Capital and Innovation X, existing backers including Fidelity, T. Rowe Price, and Cadence Ventures participated in the round.
  • CEO Jim Keller cited successful demonstrations of Galaxy servers running DeepSeek models as a key factor in choosing independence over acquisition.
  • Founded in 2016 by Ljubisa Bajic, Ivan Hamer, and Milos Trajkovic, Tenstorrent employed approximately 1,220 people as of May 2026.

AI chip startup Tenstorrent has closed a $1.5 billion funding round at a $6.2 billion valuation, marking its largest capital raise to date [1][2]. The deal, which more than doubles the company’s previous $2.6 billion valuation from late 2024, positions Tenstorrent as one of the most heavily funded challengers to Nvidia in the artificial intelligence hardware market [3].

The decision to go public with this massive raise rather than accept acquisition offers highlights a strategic pivot for the Santa Clara-based company [1]. Just five months prior, reports indicated that industry giants Intel and Qualcomm had expressed interest in acquiring Tenstorrent at valuations reaching $5 billion [2]. CEO Jim Keller stated that the choice to remain independent was heavily influenced by recent technical milestones, specifically the successful demonstration of its Galaxy servers running DeepSeek models [1][2].

The new funding round was led by Trace Capital, a firm recently launched by Ben Mahdavi, co-founder of Quiet Capital, alongside Innovation X [1]. Existing backers including Cadence Ventures, Eclipse, Fidelity, SanDisk, and T. Rowe Price also participated in the round [2]. This influx of capital comes as Tenstorrent aims to scale production for chips designed specifically to serve open-weight AI models and support video generation tasks [1].

Tenstorrent’s architecture is positioned as a direct alternative to Nvidia’s proprietary CUDA ecosystem, offering greater flexibility and transparency for developers who prefer open standards over closed systems [2]. This strategy aligns with a broader industry trend where investors are seeking viable alternatives to Nvidia’s dominance in AI infrastructure. The market appetite for such challengers is evident; competitor Etched was recently fielding investment offers at valuations exceeding $40 billion, signaling strong confidence in non-Nvidia hardware solutions [1][2].

Founded in 2016 by Ljubisa Bajic, Ivan Hamer, and Milos Trajkovic, Tenstorrent has grown significantly under Keller’s leadership. Keller joined the company as Chief Technology Officer in December 2020 before assuming the role of CEO in January 2023 [4]. As of May 2026, the company employed approximately 1,220 people [6].

While previous funding rounds included significant backing from Samsung Securities and AFW Partners, this latest valuation reflects a substantial increase in investor confidence following Tenstorrent’s recent technical achievements [5][6]. The company had previously raised $1 billion before its Series D round in late 2024, establishing it as a unicorn earlier that year [5].

Despite the high-profile raise and strong valuation, specific performance metrics comparing Tenstorrent’s Galaxy servers to competitor offerings remain undisclosed. Similarly, details regarding the timeline for the production and deployment of chips tailored for open-weight models have not been provided by the company [1][2]. As the AI hardware market continues to consolidate and diversify, Tenstorrent’s independence could serve as a key test case for whether alternative architectures can sustain long-term growth against established industry leaders.

Sources

  1. Tenstorrent hits $6.2B valuation to scale open-weight AI chips | TechCrunch (techcrunch.com) — 2026-10-19
  2. Tenstorrent hits $6.2B valuation to scale open-weight AI chips | TechCrunch (techcrunch.com) — 2026-10-19
  3. Tenstorrent Hits $6.2B Valuation in $1.5B AI Chip Round (www.techbuzz.ai) — 2026-10-19
  4. Jim Keller — CEO of Tenstorrent (siliconvalleyinvestclub.com) — 2024-12-03
  5. Tenstorrent Funding 2026: $2.3B Raised (getlatka.com) — 2026-10-08
  6. Jim Keller-Led Tenstorrent Raises Another $700M For AI Chips At $2B+ Valuation (news.crunchbase.com) — 2024-12-02

Frequently asked questions

How much money did Tenstorrent raise and what is their current valuation? ▼
Tenstorrent has raised $1.5 billion in its latest funding round, achieving a valuation of $6.2 billion. This amount more than doubles the company's previous valuation of $2.6 billion recorded in late 2024.
Why did Tenstorrent reject acquisition offers from Intel and Qualcomm? ▼
The company rejected acquisition offers from Intel and Qualcomm, which had valued the startup at up to $5 billion. CEO Jim Keller cited recent technical milestones, such as successfully running DeepSeek models on Galaxy servers, as key reasons for choosing independence.
Who are the main investors in Tenstorrent's latest funding round? ▼
The new funding round was led by Trace Capital, a firm launched by Ben Mahdavi, alongside Innovation X. Existing investors including Fidelity, T. Rowe Price, Cadence Ventures, and SanDisk also participated in the deal.
What is Tenstorrent's focus regarding AI hardware and software compatibility? ▼
Tenstorrent designs chips specifically to serve open-weight AI models and support video generation tasks. Their architecture aims to provide a direct alternative to Nvidia’s proprietary CUDA ecosystem by offering greater flexibility and transparency for developers.
Who is the CEO of Tenstorrent and when did he join the company? ▼
Jim Keller joined Tenstorrent as Chief Technology Officer in December 2020 before becoming CEO in January 2023. The company was originally founded in 2016 by Ljubisa Bajic, Ivan Hamer, and Milos Trajkovic.