Tenstorrent Raises $1.5 Billion to Scale AI Server Production

Tenstorrent raised $1.5 billion in a Series E funding round, bringing its post-money valuation to $6.2 billion. This valuation more than doubles the company's December 2024 standing, when it raised over $693 million at a $2 billion pre-money valuation.

Trace Capital and Innovation X led the round, with participation from ARK Invest, Sandisk, Morgan Stanley, T. Rowe Price, and Tether Investments. The company plans to use the new capital to scale production of its Galaxy servers. These servers utilize Tenstorrent's AI chips to power chatbots, coding assistants, and video generators.

Tenstorrent develops its hardware and software using RISC-V, an open-source architecture. The company employs this framework to reduce reliance on proprietary ecosystems such as Arm.