Tenstorrent Raises $1.5 Billion at a $6.2 Billion Valuation
Tenstorrent raised $1.5 billion in a round led by Trace Capital and Innovation X, raising its valuation to $6.2 billion and expanding its open-model chips.
Inference chip maker Tenstorrent has raised $1.5 billion in a new funding round at a $6.2 billion valuation, according to TechCrunch.
The round was led by Trace Capital, founded by Quiet Capital co-founder Ben Mahdavi, alongside Innovation X, with participation from Cadence Ventures, Eclipse, Fidelity, SanDisk, and T. Rowe Price.
The new valuation more than doubles its previous $2.6 billion valuation in late 2024. The company stated that the new capital will be directed toward expanding its chips designed for serving open AI models and video generation.
Jim Keller, CEO of the company, told Bloomberg that the company decided to remain independent and raise more funds after its "Galaxy" servers demonstrated their ability to run "DeepSeek" models. Tenstorrent competes with companies like Etched in the market for alternatives to Nvidia chips, following reports of interest from Intel and Qualcomm at valuations reaching $5 billion five months ago.
What Do These Terms Mean?
Valuation: The estimated market value of the company, determined in funding rounds based on the price investors pay for a stake in it.
Funding Round: A stage in which a startup raises money from investors in exchange for equity, often named according to its sequence, such as the first or second round.
Inference: Running a trained model to respond to user requests, which is the stage that consumes the most chips in AI services.
Open-Weight Models: Models whose code and weights are published so that any party can run or modify them independently.
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