Tenstorrent raises $1.5 billion at a $6.2 billion valuation — TechCrunch

Startup Tenstorrent, which develops chips for AI model inference, has raised $1.5 billion at a valuation of $6.2 billion. TechCrunch reports.

Investors and valuation

The new round more than doubled Tenstorrent's valuation compared with $2.6 billion at the end of 2024. The round was led by Trace Capital, a new firm launched by Quiet Capital co-founder Ben Mahdavi, and Innovation X.

Other investors included Cadence Ventures, Eclipse, Fidelity, SanDisk, and T. Rowe Price. According to the outlet, around five months ago Intel and Qualcomm expressed interest in acquiring the decade-old Nvidia competitor at a valuation of up to $5 billion.

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How the funds will be used

Tenstorrent CEO Jim Keller told Bloomberg that the company decided to remain independent and raise additional funding after demonstrating DeepSeek models running on Galaxy servers. The raised funds are planned to be used to scale chips designed to serve AI models with open weights and generate video.

Tenstorrent is part of a group of AI hardware startups seeking to compete with Nvidia. TechCrunch also mentions AI chipmaker Etched, which, according to the outlet, received investment offers at a valuation starting from $40 billion.