The Tenstorrent funding round has raised $1.5 billion, valuing the AI chip startup at $6.2 billion. The investment more than doubles its late-2024 valuation of $2.6 billion, supporting its expansion into open-weight AI computing.
Trace Capital and Innovation X led the round, with participation from Cadence Ventures, Eclipse, Fidelity, SanDisk, and T. Rowe Price. Quiet Capital co-founder Ben Mahdavi founded Trace Capital.
Tenstorrent’s New Funding to Expand Galaxy AI Servers
Tenstorrent plans to scale its Galaxy servers and develop chips optimized for AI inference, open-weight models and video generation. CEO Jim Keller said the company chose to remain independent after demonstrating that its servers could run DeepSeek models.
The decision followed reported acquisition interest from Intel and Qualcomm, with potential valuations reaching $5 billion. Neither company announced a deal.
Tenstorrent develops AI processors and computing systems using the open RISC-V architecture. Its technology offers businesses alternatives to Nvidia’s proprietary hardware ecosystem, particularly for running AI models on their own infrastructure.
The funding comes amid growing investor interest in specialized AI chips. Rival startup Etched has reportedly attracted investment offers at valuations exceeding $40 billion.
The fresh capital will help Tenstorrent expand production and compete for customers seeking more flexible, cost-effective AI infrastructure.
