Tenstorrent secures $1.5 billion in funding for AI compute

Tenstorrent, a Santa Clara-based company specializing in inference chips, announced on Monday that it has raised $1.5 billion at a $6.2 billion post-money valuation. The funding round was led by Trace Capital and Innovation X, with additional participation from Agostinelli Group, Cadence Ventures, Morgan Stanley, Sandisk, Tether Investments, and several other notable investors including ARK Invest, Brett Barna, Fidelity, and T. Rowe Price. The company, which initially focused on siphoning market share from Nvidia through design licensing, has since expanded into servers. The new capital will be used to scale manufacturing. Earlier this year, Tenstorrent was approached by Intel and Qualcomm, but has chosen to remain independent for now. The funding underscores the growing interest in specialized AI hardware, as Tenstorrent continues to position itself as a key player in the field. With its recent expansion into servers, the company is aiming to solidify its position in the market by leveraging its advanced chip technology and strategic partnerships.