Tenstorrent Raises $1.5 Bn at $6.2 Billion Valuation to Expand AI Chip Business

The round was led by Trace Capital and Innovation X. Other investors included Fidelity Management & Research Company, Valor Equity Partners, Export Development Canada, Hyundai Motor Group, Samsung Securities, LG Electronics, Bezos Expeditions, and several other institutions.

Tenstorrent to Expand AI Servers and Chip Production

Tenstorrent plans to use the new funding to deploy more of its Galaxy AI servers, increase manufacturing capacity, and expand its commercial operations. The company will also continue developing open-weight AI models and growing its portfolio of licensable AI and CPU technologies.

Tenstorrent develops AI accelerators and central processing units (CPUs) based on the open RISC-V instruction set architecture. The company offers complete computing systems built around its processors and licenses its chip designs to businesses that want to integrate its technology into their own products.

Its Galaxy platform is designed to support large-scale AI computing workloads. By expanding production and server deployments, Tenstorrent aims to serve more customers looking for alternatives in the AI infrastructure market.

Hyundai, Samsung and LG Strengthen Their Ties With Tenstorrent

The funding round includes participation from major Asian industrial and technology companies, including Hyundai Motor Group, Samsung Securities, and LG Electronics. Samsung and LG are also among the companies that have licensed Tenstorrent's technology.

The latest investment builds on an earlier $100 million strategic funding round in 2023, co-led by Hyundai Motor Group and Samsung Catalyst Fund. At the time, Hyundai said the investment would support future mobility technologies and strengthen its semiconductor capabilities.

Tenstorrent also has teams in Tokyo, Japan, and Bangalore, India, alongside offices in North America and Europe. These locations help the company maintain a presence in important semiconductor engineering and technology markets.

Tenstorrent Targets the Competitive AI Chip Market

Tenstorrent operates in a highly competitive AI chip industry, where companies are investing heavily in processor development, manufacturing, software, and computing infrastructure.

Its focus on the RISC-V architecture offers customers an alternative to proprietary processor designs. However, broader adoption will depend on software compatibility, performance, manufacturing capacity, and the ability to support real-world AI workloads.

About Tenstorrent

Tenstorrent is a Canadian semiconductor and AI computing company headquartered in Toronto. It develops AI processors, RISC-V-based CPUs, computing systems, and licensable semiconductor technology. The company focuses on providing hardware and software solutions for artificial intelligence and advanced computing applications.

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