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Intel and Qualcomm Consider Acquiring AI Chip Startup Tenstorrent
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1 min read
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Briefly Editorial Team

Intel and Qualcomm Consider Acquiring AI Chip Startup Tenstorrent

TL;DR

  • •Intel and Qualcomm in talks to acquire Tenstorrent.
  • •Startup valued at $3.2 billion with $150 million in contracts.
  • •RISC-V architecture and hybrid model make Tenstorrent strategic.

Why it matters

The deal could reshape the AI hardware market by offering an alternative to NVIDIA and accelerating RISC-V adoption. For Intel and Qualcomm, it represents a chance to strengthen positions in data centers and automotive AI.

Technical Details

Tenstorrent develops AI accelerators based on open RISC-V architecture, including Ascalon CPU cores and Tensix tensor cores. The company uses a hybrid model, selling physical chips and licensing IP—a rarity in an industry dominated by either chips or licenses.

Context and Background

In November 2025, the startup planned a $800 million funding round at a $3.2 billion valuation, up 23% from the $2.6 billion Series D round in December 2024. Key investors include Jeff Bezos' Bezos Expeditions, LG Electronics, and HOOPP. Its contract portfolio exceeds $150 million, including chip manufacturing deals with Samsung and automotive AI projects with Hyundai.

Industry Impact

For Intel, the acquisition could offset Gaudi chip underperformance, while Qualcomm gains access to RISC-V and data center markets. The AI hardware sector's valuation surge (NVIDIA, Google TPU, Cerebras) intensifies competition. Bloomberg notes Tenstorrent offers a ready ecosystem, eliminating the need to build NVIDIA alternatives from scratch.