Intel and Qualcomm are eyeing Tenstorrent as NVIDIA's rival trade comes to fruition.

      According to Bloomberg, early-stage acquisition discussions have taken place involving Tenstorrent, an AI chip startup led by Jim Keller, which secured $800 million at a $3.2 billion valuation last year and has investors such as Bezos Expeditions and Samsung.

      The startup has been in talks with Intel and Qualcomm, as reported by Bloomberg on Monday, referencing sources familiar with the discussions. These conversations are currently in the dialogue phase rather than being formal transactions. Tenstorrent did not provide any comments on the matter, nor have Intel or Qualcomm publicly confirmed these discussions.

      The company's valuation context is important. In November 2025, Tenstorrent was negotiating to raise $800 million at a $3.2 billion pre-money valuation, with Fidelity Management leading the round, an increase from the $693 million Series D it completed in December 2024 at a $2.6 billion valuation. Existing investors include Bezos Expeditions, LG Electronics, Baillie Gifford, and the Healthcare of Ontario Pension Plan. Additionally, Tenstorrent reportedly has around $150 million in customer contracts, including manufacturing deals with Samsung and commitments in automotive AI with Hyundai.

      The technical standing of Tenstorrent makes these acquisition talks understandable. The startup creates RISC-V-based AI accelerators (Ascalon CPU cores and Tensix AI cores) that it offers both as packaged silicon and as licensable intellectual property, a unique hybrid approach for a chip startup. Keller, who has experience with Apple’s A-series, Tesla’s autopilot chip, AMD’s Zen architecture, and Intel’s CPU division, became CTO in 2020 and took on the role of CEO in 2025.

      The argument for the interested acquirers is that purchasing Tenstorrent, the only viable RISC-V-AI platform on the market, is preferable to developing an NVIDIA competitor from scratch.

      Intel's rationale focuses on its need for anything that enables it to reposition against NVIDIA in the AI training market after it spent two years restructuring its discrete-accelerator strategy due to the underperformance of its Gaudi line. Qualcomm presents a more intriguing acquisition opportunity; while traditionally not competing in data-center AI due to its smartphone and Arm-based architecture, acquiring Tenstorrent would provide both a licensable IP block and a credible non-Arm CPU roadmap.

      Bloomberg does not clarify whether either Intel or Qualcomm is pursuing a full acquisition or a minority strategic investment.

      The market is currently experiencing a revaluation of NVIDIA alternatives. NVIDIA itself has committed over $40 billion in AI equity in 2026 to secure long-term GPU supply commitments from identified clients; Google’s TPU program demonstrates how alternative architecture can achieve significant customer traction; Cerebras has filed for an IPO with an inference-optimized pitch; and Groq has been raising funds at progressively increasing valuations through 2025.

      These Tenstorrent discussions are occurring within this competitive context, indicating that either buyer would be paying for the company's market position as much as for the technology itself.

      Notably, Bloomberg did not mention the proposed transaction structure, indicative price range, or if Tenstorrent's previously reported IPO plans are still being considered alongside the strategic buyer discussions. It’s common for companies at this stage to pursue dual-track processes, indicating that an $800 million primary round and acquisition talks are not necessarily mutually exclusive.

      The most likely scenario, based on the available information, is that Tenstorrent will proceed with its primary fundraising while using the strategic discussions to define the upper limit for its public market exit valuation.

      From a corporate finance perspective, Tenstorrent’s Ascalon RISC-V CPU and Tensix AI core programs are valuable assets that align well with either Intel's data-center strategies or Qualcomm’s diversification plans.

      The valuation will be a key factor; the $3.2 billion valuation established in its previous fundraising serves as a baseline for what either buyer must achieve, along with a typical premium for strategic acquisitions.

      Whether these discussions will progress to formal bids in the coming months will depend on Tenstorrent's upcoming product and customer announcements over the next two quarters.