Tenstorrent Raises $1.5 Billion, Valuation Doubles to $6.2 Billion Amid AI Chip Competition

Tenstorrent, the Toronto-based AI chip startup led by semiconductor veteran Jim Keller, has closed a $1.5 billion Series E funding round that values the company at $6.2 billion, more than doubling its previous $2.6 billion valuation from December 2024. The funding round, led by Trace Capital (a new firm from Quiet Capital co-founder Ben Mahdavi) and Innovation X, marks a major milestone for the 10-year-old chip designer as it pivots to scaling hardware for open-weight AI models and video generation workloads.