Tenstorrent Raises $1.5B, Hits $6.2B Valuation for Open-Weight AI Chips
Tenstorrent raises $1.5 billion at a $6.2 billion valuation to scale open-weight AI chips and video generation after reported Intel and Qualcomm interest.
Summary
Tenstorrent, a 10-year-old inference-chip startup, raised $1.5 billion at a $6.2 billion valuation on October 19, 2026, more than doubling its $2.6 billion valuation from late 2024. The financing came five months after reported acquisition interest from Intel and Qualcomm at valuations up to $5 billion. Trace Capital, newly launched by Quiet Capital co-founder Ben Mahdavi, and Innovation X led the round, joined by Cadence Ventures, Eclipse, Fidelity, SanDisk and T. Rowe Price.
CEO and microprocessor engineer Jim Keller said Tenstorrent remained independent after demonstrating that its Galaxy servers could run DeepSeek models. The company will use the capital to scale chips serving open-weight AI models and video generation as it challenges Nvidia’s AI hardware dominance. Rival startup Etched was fielding investment offers at valuations of at least $40 billion earlier in October 2026.
Positives
- $1.5 billion in new capital gives Tenstorrent substantial funding to scale inference chips for open-weight AI and video generation.
- $6.2 billion valuation more than doubles Tenstorrent’s $2.6 billion valuation from late 2024.
- Galaxy servers successfully ran DeepSeek models, supporting Tenstorrent’s decision to remain independent.
- Trace Capital, Innovation X, Fidelity, SanDisk and other major investors backed the financing.
Risks & concerns
- Nvidia remains the dominant AI hardware supplier that Tenstorrent and other startups are trying to displace.
- Intel and Qualcomm’s reported acquisition interest, valued at up to $5 billion, did not result in a transaction.
- Etched was fielding offers at valuations of $40 billion or more, signaling heavily funded competition among AI chip startups.
- Revenue, customer, manufacturing and production-timeline details remain undisclosed despite Tenstorrent’s higher valuation.