Technology
Intel, Qualcomm Circle Tenstorrent as AI chip race widens
AI chip startup Tenstorrent has reportedly drawn acquisition interest from Intel and Qualcomm as competition in artificial intelligence hardware accelerates. The company develops AI processors and RISC-V based computing technology and raised more than $693 million in funding during its latest investment round announced in late 2024.
Tenstorrent has reportedly attracted Intel and Qualcomm interest as semiconductor companies expand investments in AI chips and infrastructure worldwide.
Key Highlights
- Tenstorrent reportedly attracted acquisition interest from Intel and Qualcomm.
- The AI chip startup raised over $693 million in funding during 2024.
- IDC expects global AI infrastructure spending to exceed $200 billion by 2028.
- Tenstorrent develops AI processors using RISC-V computing architecture.
Tenstorrent, the AI chip startup led by veteran chip designer Jim Keller, has attracted takeover interest from Intel and Qualcomm, according to Bloomberg reports citing people familiar with the matter.
The talks are said to be at an early stage, with no confirmed transaction announced. The development comes as semiconductor companies push deeper into artificial intelligence infrastructure, where demand for advanced computing chips continues to rise.
AI Spending Keeps Climbing
Tenstorrent develops AI chips and RISC-V based processors used in machine learning and data center computing. The company operates in Canada, the United States, Japan, India and Serbia.
The reported interest follows continued growth in AI infrastructure spending after the rapid expansion of generative AI platforms over the past two years. Research firm IDC said global spending on AI infrastructure is expected to surpass $200 billion by 2028, driven largely by servers and accelerated computing systems.
The AI chip market remains heavily dominated by Nvidia, whose data center business has expanded sharply alongside demand from cloud providers and enterprise software companies. That pressure has pushed rivals including Intel, Qualcomm, AMD and newer startups to strengthen their AI hardware capabilities.
Funding Put Tenstorrent on Industry Watchlists
Tenstorrent raised more than $693 million in a Series D funding round announced in December 2024. The funding valued the company at about $2 billion before investment.
Investors included Samsung Securities, AFW Partners, Hyundai Motor Group, LG Electronics and Bezos Expeditions. Industry databases estimate the company has raised more than $1 billion overall since its launch in 2016.
Jim Keller previously held senior chip engineering roles at Intel, AMD, Apple and Tesla before joining Tenstorrent.
RISC-V Gains Wider Attention
Tenstorrent’s processors are based partly on RISC-V, an open-standard chip architecture increasingly gaining attention across the semiconductor industry as companies seek alternatives to proprietary systems.
The technology has also drawn interest in Asia, where governments and chipmakers are expanding domestic semiconductor projects tied to AI computing and advanced manufacturing.
Intel, Qualcomm and Tenstorrent have not publicly commented on the reported discussions.
FAQs
Q1. Why are Intel and Qualcomm interested in Tenstorrent?
Tenstorrent develops AI chips and RISC-V processors as demand for artificial intelligence computing hardware continues rising globally.
Q2. What is Tenstorrent known for in the AI chip market?
Tenstorrent builds AI processors and machine learning hardware designed for data centers and high-performance computing systems.
Q3. How much funding has Tenstorrent raised?
Tenstorrent raised more than $693 million in its latest funding round announced in December 2024.
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