Intel and Qualcomm are competing for Jim Keller's $5 billion AI startup.

Intel has long recognized its weak position in the specialized AI accelerator segment. As a result, the company is actively scouting promising startups for potential acquisition—just as it did before. One such candidate is Tenstorrent, which could attract interest not only from Intel but also from competing Qualcomm, eager to strengthen its presence in this area.

Sources say Bloomberg reports that Tenstorrent is already negotiating with several prospective buyers. Among them, Intel and Qualcomm stand out clearly. The startup is also consulting investment banks that could facilitate the deal. Applications from other interested parties are expected to be considered as well.

Valuation estimate

An early valuation of Tenstorrent is at least $5 million. This figure is based on Cerebras Systems’ recent IPO: it sold shares at $185 each, raising $5.55 billion and reaching a market capitalization of about $65 billion.

Development history

In November last year, Tenstorrent was considering raising several hundred million dollars at an estimated ~$3.2 billion valuation. Since January 2023, the company has been led by Jim Keller—a well-known American engineer who worked on commercially successful processors for Intel, AMD, Apple, and Tesla. He has served as chief technology officer since 2021.

Thus, Tenstorrent sits at the crossroads of major tech giants’ interests, and its potential value is drawing attention from both investors and competitors in the AI accelerator space.