TL;DR
- Tether participated in Tenstorrent’s $1.5 billion funding round. The company specializes in AI processors and computing infrastructure.
- The deal valued Tenstorrent at $6.2 billion and will support expanded server production, chip development, and commercial operations.
- The investment aims to improve access to open AI infrastructure and reduce dependence on traditional hardware and cloud service providers.
Tether Capital participated in Tenstorrent’s $1.5 billion Series E funding round. The company develops processors, servers, and software for artificial intelligence.
The deal gave Tenstorrent a $6.2 billion valuation. The company will use the funding to expand production capacity and develop new computing technologies.
The investment supports Tether’s efforts to improve access to AI infrastructure, allowing businesses and developers to run models without relying exclusively on major cloud service providers.
Tether Backs the Development of AI Processors and Servers
Tenstorrent, led by chip architect Jim Keller, develops specialized processors, server systems, and open-source software tools.
Its technology allows AI models to run locally, on hardware ranging from individual workstations to large-scale server installations.
The company also licenses its chip designs to manufacturers developing their own processors. Its customers include Samsung and LG.
With the new funding, Tenstorrent will expand production and distribution of its Galaxy server systems while continuing to develop its AI and CPU technologies.
Its solutions support applications including large language models and video generation.
Reducing Dependence on Centralized Infrastructure
Paolo Ardoino, CEO of Tether, said individuals and businesses should be able to develop and run AI systems without depending on a small number of technology providers.
He emphasized that Tenstorrent gives developers greater freedom to choose how they build and run their AI applications.
The investment also complements Tether’s work on QVAC, its open-source artificial intelligence platform.
QVAC is designed to run models directly on users’ devices, reducing reliance on centralized services and giving users greater control over their data.
Through its investment in Tenstorrent, the company is expanding its investments in AI software, processors, and computing systems needed to run these applications.
