● Covered by 1 source · 1 reportMedium impact1 neutral
Tenstorrent raises $1.5 billion at $6.2 billion valuation for open-weight AI chips
Key points
- Tenstorrent raised $1.5 billion in new funding.
- The company's valuation reached $6.2 billion.
- Funding will scale chips for open-weight AI and video generation.
- Jim Keller stated the company chose independence over acquisition.
Funding Round Details
Tenstorrent, a chip startup specializing in inference, completed a $1.5 billion funding round. This investment pushed the company's valuation to $6.2 billion. The round was led by Trace Capital and Innovation X, with additional participation from Cadence Ventures, Eclipse, Fidelity, SanDisk, and T. Rowe Price.
Increased Valuation and Independence
This new funding more than doubled Tenstorrent's previous valuation of $2.6 billion from late 2024. The company reportedly received acquisition interest from Intel and Qualcomm at valuations up to $5 billion five months prior. CEO Jim Keller confirmed the decision to remain independent and raise capital after demonstrating the capability of its Galaxy servers to run DeepSeek models.
Strategic Investment Focus
The capital infusion will be directed towards scaling the production of chips. These chips are specifically tailored for serving open-weight AI models and for video generation applications. This move aims to strengthen Tenstorrent's position in the AI hardware market.
Competition in the AI Chip Market
Tenstorrent is among several AI hardware startups challenging Nvidia's market dominance. Other companies, such as Etched, are also attracting significant investment, indicating a growing competitive landscape in the AI chip sector.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
Tenstorrent, an AI chip startup, secured $1.5 billion in funding, increasing its valuation to $6.2 billion. This capital will be used to scale chips designed for open-weight AI models and video generation, positioning the company to compete with Nvidia.