Tenstorrent raises $1.5 billion at $6.2 billion valuation

Tenstorrent said Monday it raised $1.5 billion in a Series E funding round that values the AI chip company at $6.2 billion, more than double its $2.6 billion valuation in 2024. The company plans to use the capital to expand deployment of its Galaxy servers as it seeks to build an alternative to established AI computing systems. Trace Capital and Innovation X led the round, according to the company’s funding announcement. Participants included ARK Invest, Fidelity Management & Research Company, Morgan Stanley, T. Rowe Price, SanDisk, Tether Investments, Cadence Ventures and Protagonist, along with other investors. Tenstorrent’s strategy centers on processors built around the open RISC-V architecture and open-source software. Its product range includes processor designs, accelerator cards, workstations and server systems. The company says Galaxy servers combine multiple AI processors and are designed to run workloads such as large language models, coding assistants and video generation systems. CEO Jim Keller said Tenstorrent chose to raise new funding rather than sell the company. He also said a demonstration of Galaxy servers running DeepSeek models in May marked a turning...