Tenstorrent Raises $1.5B at $6.2B Post-Money Valuation

What happened

AI chip startup Tenstorrent said on October 19 that it has raised $1.5 billion in a late-stage funding round at a $6.2 billion post-money valuation — more than doubling its valuation from December 2024. The Series E round was led by Trace Capital and Innovation X.

Other backers included ARK Invest, Sandisk, Morgan Stanley, T. Rowe Price and Tether Investments. The 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, based in Santa Clara, California, is led by CEO Jim Keller, a prominent chip architect who previously led Tesla's self-driving chip effort and held key design roles at Apple and AMD. The company develops AI chips and software on RISC-V, an open-source chip architecture that carries no license fees and reduces dependence on proprietary ecosystems such as Arm's. Its previous round in December 2024 raised more than $693 million at a $2 billion pre-money valuation, led by Samsung Securities and AFW Partners.

Key facts

1. Amount and valuation: $1.5B Series E at a $6.2B post-money valuation
2. Lead investors: Trace Capital, Innovation X
3. Other backers: ARK Invest, Sandisk, Morgan Stanley, T. Rowe Price, Tether Investments
4. Use of funds: Scaling production of Galaxy servers
5. Tech approach: AI chips and software on the open-source RISC-V architecture
6. Previous round: Over $693M in December 2024 at a $2B pre-money valuation