Tenstorrent has closed a $1.5 billion Series E round at a $6.2 billion post-money valuation, the AI chip company announced Monday, October 19 . Trace Capital and Innovation X led the round.

The valuation is more than double the $2.6 billion Tenstorrent fetched in late 2024, TechCrunch reported , and the raise comes five months after Intel and Qualcomm reportedly showed acquisition interest at valuations of as much as $5 billion. Other participants included ARK Invest, Cadence Ventures, Eclipse, Fidelity, Morgan Stanley, Sandisk, T. Rowe Price, Tether Investments, Virtu Financial and XTX Markets. Trace Capital is a new firm launched this year by Quiet Capital co-founder Ben Mahdavi.

Raising instead of selling

CEO Jim Keller told Bloomberg the company chose to stay independent after a demonstration in May showed its Galaxy servers could run DeepSeek models, which he called a turning point.…