AI chip startup Tenstorrent has raised $1.5 billion in a late-stage funding round, valuing the company at $6.2 billion post-money. Announced on Monday, the funding more than doubles its valuation from December 2024, when the company was valued at $2 billion before the investment.
Based in Santa Clara, California, Tenstorrent plans to use the fresh capital to scale production of its Galaxy servers, which integrate dozens of AI chips to power applications such as chatbots, coding assistants and video generators. The company develops AI chips and software based on RISC-V, an open-source chip architecture that allows developers to design processors without licensing fees, offering an alternative to proprietary ecosystems such as Arm.
The Series E funding round was led by Trace Capital and Innovation X, with participation from investors including Cathie Wood’s ARK Invest, Sandisk, Morgan Stanley, T. Rowe Price and Tether Investments. Tenstorrent is led by CEO Jim Keller, a prominent chip architect who previously worked on Tesla’s self-driving chip development and held key design roles at Apple and AMD. The company’s previous funding round, in December 2024, raised more than $693 million, with Samsung Securities and AFW Partners leading the investment.
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