Tenstorrent raises $1.5 billion at a $6.2 billion valuation

Tenstorrent has closed $1.5 billion in Series E funding at a $6.2 billion post-money valuation, the AI chip company said Monday.

Trace Capital and Innovation X led the round, with participation from investors including ARK Invest, Fidelity Management & Research Company, Morgan Stanley, Sandisk, T. Rowe Price, Tether Investments and XTX Markets, according to Tenstorrent.

Why it matters

Tenstorrent said it will use the money to fund volume manufacturing, deploy its Galaxy servers at scale and advance the AI and CPU designs it licenses to customers building their own chips.

“We built one architecture and sell it at every size,” Tenstorrent CEO Jim Keller said in the announcement.

Who has a stake

Tenstorrent builds RISC-V-based AI processors and systems and licenses its TT-Ascalon RISC-V CPU and Tensix AI cores to chip designers including Samsung and LG, the company said.

“Jim and his team bring decades of hands-on silicon, software, and IP experience, and we’re excited to partner with Tenstorrent as Galaxy continues to scale,” Ben Mahdavi, founder of Trace Capital, said in the release.

What’s next

Tenstorrent said the funding will also support global commercial expansion as chip designers, sovereign buyers and inference platforms seek to own their AI compute.