Intel, Qualcomm Circle Tenstorrent as NVIDIA Alternative Grows

Bloomberg has reported that Tenstorrent, the AI chip startup led by legendary chip architect Jim Keller, has engaged in preliminary takeover discussions with both Intel and Qualcomm. According to sources familiar with the matter, these conversations are still in their early stages. The company, which secured $800 million in funding last year at a $3.2 billion valuation, counts Bezos Expeditions and Samsung among its prominent backers.

The interest from two of the semiconductor industry’s biggest names underscores the growing demand for NVIDIA alternatives in the AI hardware space. Tenstorrent has positioned itself as a viable contender by focusing on RISC-V architecture, an open-standard instruction set that offers greater flexibility and lower licensing costs compared to proprietary designs. This approach has attracted attention from companies seeking to diversify their AI chip supply chains and reduce dependence on NVIDIA’s dominant ecosystem.

Jim Keller, a veteran chip designer who has previously worked at Apple, AMD, and Tesla, brings significant credibility to the startup. His track record of developing high-performance processors has made Tenstorrent a compelling acquisition target for firms looking to bolster their AI capabilities. For Intel, a deal could help accelerate its push into AI accelerators, while Qualcomm might see it as a way to strengthen its data center and edge computing offerings.

The potential acquisitions come at a time when the AI chip market is heating up, with demand for specialized hardware skyrocketing alongside the rapid adoption of generative AI and large language models. Tenstorrent’s focus on open-source technology and its ability to deliver competitive performance could make it an attractive piece of either company’s long-term strategy, though no final decisions have been made.