Business · Companies · 2 hrs ago
Tenstorrent raises $1.5 billion to expand its AI chip business
Toronto-founded Tenstorrent raised $1.5 billion in a funding round that values the company at $6.2 billion.
The AI chipmaker is now based in the United States, but its largest office remains in Toronto, with 200 of its 1,000 employees there.
Tenstorrent makes hardware and software for running AI models, a task known as inference, as well as tools for other AI workloads.
Nvidia dominates the market for AI chips, while Tenstorrent argues its customizable, open approach can offer an alternative.
The company says it will use the new money to increase production of its Galaxy servers, develop new hardware and technology, and hire more staff.
Its technology is aimed at customers running AI models, including open-weight models that developers can modify.
Tenstorrent is scaling up to compete with Nvidia as demand for AI computing grows.
Tenstorrent has raised US$1.5 billion in a funding round that values the company at US$6.2 billion.
The Toronto-founded AI chipmaker plans to use the money to expand production of its Galaxy servers, develop new hardware and intellectual property, and hire staff.
The round was led by US investors Trace Capital and Innovation X.
Tenstorrent is developing AI hardware and software to compete with Nvidia and other chipmakers, with a focus on open and customizable technology.
The company is based in the United States but has 200 of its 1,000 employees in Toronto.
- Who
- Tenstorrent, a Canadian-founded AI infrastructure and chip company.
- What
- It raised US$1.5 billion in a Series E funding round at a post-money valuation of US$6.2 billion.
- When
- The company announced the funding on October 19, 2026.
- Where
- Tenstorrent is based in the United States and was founded in Toronto. The round was led by Trace Capital and Innovation X.
- Why
- The funding is intended to support global expansion, Galaxy server manufacturing, new hardware and intellectual property development, and hiring.
This story does not have two clearly opposing sides.
Tenstorrent closed a nearly US$700-million Series D at a US$2.6-billion valuation.
Tenstorrent moved its headquarters from Toronto to the United States.
Tenstorrent announced that it had closed a US$1.5-billion Series E funding round.
- Funding raised
- US$1.5 billion
- Post-money valuation
- US$6.2 billion
- Round lead investors
- Trace Capital and Innovation X
- Toronto employees
- 200 of 1,000
- Previous valuation
- US$2.6 billion at the late-2024 Series D
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What people are saying
We built one architecture and sell it at every size
The future of compute is open, scalable, and owned by the people building on it.
We built a scalable, open-source software stack because we believe customers want flexibility and control
AI models keep changing, so hardware has to run whatever comes next.