US-based Tenstorrent Raises $1.5 Billion to Expand AI Server Production

en.Wedoany.com Reported - On October 19, AI chip company Tenstorrent announced the completion of a $1.5 billion Series E funding round, reaching a post-money valuation of $6.2 billion, co-led by Trace Capital and Innovation X. The funding will be used to scale up production and global deployment of the Galaxy AI server, and to continue developing AI processor and central processing unit technologies for customer licensing.

Investors in this round include Morgan Stanley, Fidelity Management & Research Company, ARK Invest, SanDisk, Cadence Ventures (the investment arm of Cadence Design Systems), as well as Tether Investments, Protagonist, and other companies and institutions. Tenstorrent previously completed a funding round in December 2024 at a valuation of approximately $2.6 billion; the post-money valuation of this round represents an increase of approximately 138% over the previous round.

The Galaxy server utilizes Tenstorrent's self-developed AI accelerators and RISC-V processor architecture, targeting large language models, video generation, and other AI computing tasks. The servers began shipping in April 2026; each system is equipped with 32 Blackhole processors, delivering 23 petaFLOPS of computing performance at FP8 precision. The company plans to use the new funding to expand manufacturing and deployment of this server series.

Tenstorrent's computing products also include the Blackhole AI accelerator card and the TT-QuietBox liquid-cooled workstation. Galaxy servers can be interconnected into multi-system computing clusters for enterprise on-premises AI deployment and data center computing services. Fintech company Virtu Financial has adopted the servers to run on-premises AI trading applications, and data center operator Equinix also offers Tenstorrent computing systems to enterprise customers.

In addition to complete systems, Tenstorrent licenses its TT-Ascalon CPU and Tensix AI compute cores to chip design companies, with customers including Samsung Electronics and LG Electronics. The company's TT-Forge compiler, TT-Metalium software development kit, and low-level compute tools support AI model adaptation and processor operation optimization. This funding round will also be used to advance processor intellectual property R&D and expand the international business team.