The Pulse
Tenstorrent Raises $1.5B to Scale Galaxy AI Servers
Tenstorrent closed a $1.5 billion Series E at a $6.2 billion post-money valuation, led by Trace Capital and Innovation X. The company says it will use the funding to expand Galaxy server deployments and develop AI and CPU designs for custom
AI.info Team · Written with AI · fact-checked ·
Tenstorrent announced on October 19 that it had closed a $1.5 billion Series E, valuing the AI computing company at $6.2 billion after the investment. The company says it will put the capital toward deploying its Galaxy servers at scale and expanding sales of the AI and CPU designs it licenses to customers. Trace Capital and Innovation X led the round.
The raise gives Tenstorrent new capital to expand beyond chip design and into larger server deployments, while continuing to sell hardware and license intellectual property. Its strategy offers customers another way to build AI systems outside established chip platforms. Axios describes the company’s original aim as taking a share of Nvidia’s market; Tenstorrent’s funding announcement does not name Nvidia or set out a direct product challenge.
Trace Capital and Innovation X lead the $1.5B round
Tenstorrent listed Agostinelli Group, ARK Invest, Cadence Ventures, Eclipse, Fidelity Management & Research Company, Maverick Silicon, Morgan Stanley, Sandisk, T. Rowe Price, Tether Investments, Troluce Capital, Virtu Financial and XTX Markets among the other participants. The company described the group as including both new and existing investors.
“We built one architecture and sell it at every size,” Jim Keller, Tenstorrent’s CEO, said in the announcement. He described the company’s model as open and scalable, with technology owned by the people building on it. The release does not disclose how much each investor contributed or what share of the company the round sold.
Galaxy servers are the stated use for the capital
Tenstorrent says it will use the funding to deploy Galaxy servers at scale and continue supporting open-weight models for large language tasks and video generation. It also plans to advance the AI and CPU intellectual property it licenses to customers designing their own silicon. The company sells AI computing products ranging from individual cards and workstations to racks and superclusters.
That spread of products is central to Tenstorrent’s pitch: customers can buy systems built around its chips or license designs for custom silicon. The company also points to its open-source software stack, which it says lets developers run models locally and enterprises deploy them on their own premises. The announcement provides no production target, server shipment schedule or named customer commitments tied to the new funding.
The new valuation follows a $693M-plus Series D
Tenstorrent’s previous disclosed financing was a Series D that closed in December 2024. The company said that round raised more than $693 million at a $2 billion pre-money valuation, with Samsung Securities and AFW Partners leading. The new Series E is larger, but its $6.2 billion figure is post-money, so it should not be compared directly with the earlier round’s pre-money valuation.
Tenstorrent’s announcement makes clear where it plans to spend: Galaxy server deployments, global commercial expansion and licensed chip designs. It leaves open the practical measures that will show how quickly those plans translate into production, including how many systems the company expects to ship and when.