Tenstorrent Raises $1.5 Billion in Series E at $6.2 Billion Valuation
The AI chip startup led by Jim Keller chose outside investment and independent growth over a sale, with Trace Capital leading the round announced October 19, 2026.
Tenstorrent raised $1.5 billion in a Series E funding round announced on October 19, 2026, valuing the AI chip startup at $6.2 billion. Trace Capital led the investment, according to aitimes.com.
The round included participation from InnovationX, Agostinelli Group, SanDisk, Tether Investments, T. Rowe Price and Cadence Ventures. Existing investors Ark Invest and Fidelity also joined.
CEO Jim Keller said the company chose outside investment and independent growth instead of a sale. Tenstorrent has begun shipping products, and a May demo running DeepSeek's high-performance AI model on its Galaxy Server was a turning point for investor interest.
Tenstorrent designs chips for specific AI workloads and also offers servers and software to compete with Nvidia and AMD. The company currently has about 1,150 employees.
Earlier acquisition interest and founding
About five months before this article, Tenstorrent was discussed as a possible acquisition target for Intel and Qualcomm. In 2024, the company was valued at $2.6 billion in an earlier funding round.
Tenstorrent was founded in 2016 by Ljubiša Bajić, Miloš Trajković and Ivan Hamer, all formerly of AMD. Competitor Etched is also reported to have received investment offers.
Quick answers
How much did Tenstorrent raise in its Series E round?
Tenstorrent raised $1.5 billion in a Series E funding round announced on October 19, 2026.
What is Tenstorrent's valuation after the round?
The round valued the company at $6.2 billion.
Who led the investment?
Trace Capital led the investment, with participation from InnovationX, Agostinelli Group, SanDisk, Tether Investments, T. Rowe Price and Cadence Ventures, as well as existing investors Ark Invest and Fidelity.