Tenstorrent Achieves $2.6 Billion Valuation with Nearly $700 Million Series D Round

Tenstorrent, a cutting-edge artificial intelligence (AI) hardware company with Canadian roots and a current base in the United States, has successfully raised more than $693 million USD in its Series D funding round. This substantial financial infusion comes from a high-profile group of investors, including Jeff Bezos’s investment firm and global electronics giant Samsung. With the support of such prominent backers, Tenstorrent is set to advance its ambitions to become a major competitor in the AI chip market, challenging industry leaders like Nvidia. The company plans to utilize this fresh capital to strengthen its position in the AI sector by focusing on expanding its open-source AI software stacks, scaling its workforce, growing its global network of development and design centers, and building advanced systems and cloud infrastructures for AI developers.

The Series D round, which closed just last week, was spearheaded by two of Tenstorrent’s existing investors, South Korea’s AFW Partners and Samsung Securities, further solidifying the company’s relationships with major international backers. The investment round, which included over $593 million in equity along with a $100 million convertible note from 2023 that was converted into equity, has led to a post-money valuation of $2.6 billion for Tenstorrent. With this latest financing, the company’s total funding raised to date now approaches $1 billion. This milestone underscores the growing confidence in Tenstorrent’s technology and its ability to lead innovation in AI hardware.

In an interview with BetaKit, Bob Grim, Tenstorrent’s vice president of investor relations and corporate communications, shed light on the factors contributing to the company’s impressive fundraising success. He pointed to the sustained interest in AI, which continues to be a driving force behind Tenstorrent’s growth, as well as the visionary leadership of CEO Jim Keller. Keller’s track record in the tech industry, particularly in semiconductor and AI innovations, has attracted both investors and talent to Tenstorrent, positioning the company as an important player in the AI chip space.

The announcement of the Series D funding comes shortly after Tenstorrent made a strategic decision to relocate its headquarters from Toronto to Santa Clara, California. While the move marks a shift in the company’s geographic footprint, it is a reflection of Tenstorrent’s growth and ambitions as it prepares to expand its influence in the global tech ecosystem. Grim shared that the decision to move was primarily motivated by two key factors. First, one of the company’s major investors wanted to increase its stake in Tenstorrent, but was restricted by regulations that limited the amount they could own if Tenstorrent remained based outside the US. Second, relocating to the US is often seen as a common precursor to an initial public offering (IPO) on major American stock exchanges such as Nasdaq or the New York Stock Exchange, both of which offer greater visibility and potential access to capital for high-growth technology companies.

Despite relocating its headquarters, Tenstorrent has not severed its ties with Canada. The company has retained its office in Toronto, where it continues to employ 140 people, an increase from 110 employees earlier this year. This reflects Tenstorrent’s ongoing commitment to its Canadian roots. Grim emphasized that Canada remains a key focus for the company, both as a strategic location for its operations and as a source of talent and innovation. The company has expressed its intention to continue growing its Canadian workforce as part of its broader plans for expansion. In addition to its existing investors, Tenstorrent’s Series D round also attracted three new Canadian investors: Export Development Canada, the Healthcare of Ontario Pension Plan, and Georgian. This further reinforces the company’s connection to the Canadian investment community and underscores the strong support for its vision in the country.

With its recent funding and continued expansion efforts, Tenstorrent is positioning itself to become a leading force in the AI hardware market, competing with major players like Nvidia and Intel. The company’s investment in open-source AI stacks and systems for AI developers reflects its commitment to creating an ecosystem that supports innovation and accelerates the adoption of AI technologies across industries. As Tenstorrent continues to grow its presence in both Canada and the US, it is well-positioned to make a significant impact on the AI hardware landscape, and its eventual IPO could signal the next stage of its evolution into a global tech leader.

Tenstorrent’s focus on innovation, combined with its strategic moves in the funding and expansion spaces, highlights its commitment to becoming a key player in the rapidly evolving AI industry. As it looks ahead, Tenstorrent will continue to leverage its robust investment backing, visionary leadership, and global operations to push the boundaries of AI technology, ultimately advancing the development of powerful AI systems and cloud infrastructures that will define the next era of technological advancement.