Tenstorrent raises $1.5B in Series E funding to challenge GPU dominance

Canadian-based Tenstorrent has closed a $1.5 billion USD Series E equity round, pushing its post-money valuation to $6.2 billion USD. The funding, led by new US investors Trace Capital and Innovation X, is earmarked for scaling the company’s Galaxy servers into volume manufacturing and developing next-generation hardware and intellectual property (IP).

Tenstorrent already began shipping its Galaxy servers commercially. With this substantial capital, the firm plans to expand production capacity while continuing to license its AI and RISC-V IP to clients seeking to own and customize their silicon. Its target market includes chip designers, sovereign infrastructure providers, and inference platforms, with existing partners such as Equinix and Virtu Financial.

The company maintains a physical presence in Canada; Toronto remains its largest office, housing 200 of its 1,000 employees, and parts manufacturing continues at Vexos Canada’s Markham site. This retention of Canadian operations occurs despite the firm relocating its headquarters from Toronto to Santa Clara, California, in 2023, a move aimed at securing larger American investment pools ahead of an eventual IPO.

The Series E funding comes as Tenstorrent has previously been subject to takeover interest reports from major US chipmakers like Intel and Qualcomm. The current capital raise signals the company’s continued commitment to its independent path, prioritizing scale and open-source development over a potential acquisition.