Tenstorrent hits $6.2B valuation to scale open-weight AI chips
News Source
β’Mon, 19 Oct 2026 18:37:27 +0000
π° What Happened
Tenstorrent, a chip startup that builds hardware for running AI models, has raised $1.5 billion. The round values the company at $6.2 billion, more than double its $2.6 billion value in late 2024.
The round was led by Trace Capital and Innovation X, with money from Cadence Ventures, Eclipse, Fidelity, SanDisk and T. Rowe Price. Five months ago the company reportedly drew takeover interest from Intel and Qualcomm at up to $5 billion.
π The Backstory
Tenstorrent is 10 years old and is led by Jim Keller, a well-known chip engineer. It sells servers and chips meant to run open AI models, the kind anyone can download and use. Keller told Bloomberg the firm chose to stay independent after showing its Galaxy servers could run DeepSeek models.
Nvidia still dominates AI chips. A wave of startups is trying to take a share by selling cheaper or more open hardware. Rival Etched has reportedly drawn valuations above $40 billion.
π― Why It Matters
More chip makers mean more competition and possibly lower prices for running AI. That affects what AI tools cost and who can build them.
Tenstorrent, a chip startup that builds hardware for running AI models, has raised $1.5 billion. The round values the company at $6.2 billion, more than double its $2.6 billion value in late 2024.
The round was led by Trace Capital and Innovation X, with money from Cadence Ventures, Eclipse, Fidelity, SanDisk and T. Rowe Price. Five months ago the company reportedly drew takeover interest from Intel and Qualcomm at up to $5 billion.
Tenstorrent is 10 years old and is led by Jim Keller, a well-known chip engineer. It sells servers and chips meant to run open AI models, the kind anyone can download and use. Keller told Bloomberg the firm chose to stay independent after showing its Galaxy servers could run DeepSeek models.
Nvidia still dominates AI chips. A wave of startups is trying to take a share by selling cheaper or more open hardware. Rival Etched has reportedly drawn valuations above $40 billion.
More chip makers mean more competition and possibly lower prices for running AI. That affects what AI tools cost and who can build them.