Qualcomm is reportedly in talks to acquire AI chip design company Tenstorrent for a valuation between $8 billion and $10 billion, according to sources familiar with the discussions. This potential acquisition would represent a strategic move for Qualcomm to expand its presence in the upstream AI space, particularly in data centers, moving beyond its primary focus on end-user devices and smartphone chip manufacturing.
The discussions are said to be in early stages, with no definitive agreement reached. Tenstorrent, led by chip industry veteran Jim Keller, develops AI chips designed to compete with Nvidia in data centers, and has raised over $1 billion from investors including Samsung and Bezos Expeditions. The company was previously valued between $2 billion and $2.6 billion in early 2024, and later pursued an $800 million funding round at a $3.2 billion valuation, highlighting the significant premium Qualcomm is reportedly considering.
This potential acquisition would provide Qualcomm with immediate access to advanced AI chip technology and a highly regarded engineering team, accelerating its efforts to establish a stronger position in AI infrastructure. Qualcomm has been working to diversify its revenue streams beyond smartphones, focusing on data centers, enterprise AI, automotive systems, and edge computing, with a roadmap that includes custom AI chips and server processors.
For Qualcomm, this deal would underscore its commitment to the AI market, especially given its recent push into AI. CEO Cristiano Amon previously stated that initial shipments of AI chips to a "leading hyperscaler" were on track for later this year, and last month, Bloomberg reported that Qualcomm reached a deal to supply millions of AI chips to ByteDance, TikTok's parent company, for its AI data centers.
Questions remain about the materialization of the deal, as Tenstorrent has also been exploring options for additional funding rounds. Should the acquisition proceed, it would be Qualcomm’s second RISC-V acquisition in roughly six months, following a reported $200-$600 million purchase of Ventana Micro Systems in December 2025.
