QUALCOMM IN TALKS TO BUY AI CHIP MAKER TENSTORRENT

Qualcomm has entered talks to buy Tenstorrent, according to sources with direct knowledge of the negotiations. The potential acquisition price ranges from $8 billion to $10 billion, representing a substantial increase from the startup's valuation just over a year ago. Tenstorrent, founded by Ljubisa Bajic and Igor Marjanovic, specializes in designing processors for artificial intelligence workloads. The company has positioned itself as a competitor in the growing market for AI-optimized chips, an area dominated by NVIDIA and increasingly populated by custom silicon from major cloud providers and chip makers. The valuation jump reflects the accelerated demand for AI infrastructure following the generative AI boom. When Tenstorrent sought to raise $800 million in funding last year, the company was valued at approximately $3.2 billion. An $8 billion to $10 billion acquisition price would represent a 2.5x to 3x increase in just over twelve months. For Qualcomm, the acquisition would expand its AI chip capabilities beyond its current portfolio. The semiconductor giant has traditionally focused on mobile processors, though it has expanded into data center and automotive markets. Adding Tenstorrent's AI chip technology would strengthen Qualcomm's competitive position in the lucrative enterprise and cloud AI segments. The deal also underscores the strategic importance of AI silicon design. Major technology companies have invested heavily in developing proprietary chips optimized for machine learning tasks, recognizing both the performance and cost advantages they provide. The negotiations remain ongoing, and deal terms could change. Neither company has made an official announcement regarding the potential acquisition.