AI chip startup Tenstorrent more than doubles its valuation to $6.2 billion in funding round

Arm Holdings

Mon 12:40

Oct 19 (Reuters) - Tenstorrent said on Monday it raised $1.5 billion in a late-stage funding round that valued the AI chip startup at $6.2 billion post-money, more than doubling its valuation from December 2024.
Here are some more details:
The Santa Clara, California-based company said it would use the funding to scale production of its Galaxy servers, which combine dozens of its AI chips to power applications including chatbots, coding assistants and video generators.
Tenstorrent develops AI chips and software using RISC-V, an open-source chip architecture that enables companies to design processors without license fees and reduce dependence on proprietary chip ecosystems such as Arm's O9Ty.F
The Series E round was led by Trace Capital and Innovation X. Other backers included Cathie Wood's ARK Invest, Sandisk SNDK.O, Morgan Stanley MS.N, T. Rowe Price TROW.O and Tether Investments.
Tenstorrent CEO Jim Keller, a prominent chip architect, previously led Tesla's TSLA.O efforts to develop a self-driving chip for electric vehicles and held key design roles at Apple AAPL.O and AMD AMD.O among others.
The startup's last funding round raised more than $693 million in December 2024 at a $2 billion pre-money valuation, with Samsung Securities 016360.KS and AFW Partners leading the financing.

 (Reporting by Anhata Rooprai in Bengaluru and Max A. Cherney in San Francisco; Editing by Tasim Zahid)
 ((Anhata.Rooprai@thomsonreuters.com))