Reports indicate Intel is in early-stage talks to acquire AI-chip startup Tenstorrent, valued above $5 billion, amid its AI accelerator expansion.
Intel shares rose Wednesday after reports surfaced that the company is exploring the acquisition of Tenstorrent, an AI-chip startup. The discussions are preliminary, with no deal announced or guaranteed, but highlight Intel’s strategic focus on AI hardware amid competition in the sector.
Tenstorrent, founded by semiconductor veteran Jim Keller, specializes in RISC-V-based AI processors for training and inference workloads. Earlier fundraising discussions pegged its valuation near $3.2 billion, though recent reports suggest a potential deal could exceed $5 billion. The company has also engaged with other potential suitors, including Qualcomm.
An acquisition would align with Intel’s efforts to strengthen its position in high-performance computing and AI accelerators. The chipmaker has been working to close the gap with rivals in the rapidly growing AI hardware market, though no formal agreement has been reached.