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AI NewsTenstorrent hits $6.2B valuation to scale open-weight AI chips

Tenstorrent hits $6.2B valuation to scale open-weight AI chips

3:31 AM IST · October 20, 2026

Tenstorrent hits $6.2B valuation to scale open-weight AI chips

Tenstorrent, a chip startup focused on inference, has raised $1.5 billion at a $6.2 billion valuation. The round comes five months after the 10-year-old Nvidia challengerreportedlyreceived acquisition interest from Intel and Qualcomm at valuations of as much as $5 billion. The fresh round, which more than doubled Tenstorrent’s valuation from the$2.6 billionit fetched in late 2024, was led by Trace Capital, a new firm launched by Quiet Capital co-founder Ben Mahdavi, and Innovation X. Other backers included Cadence Ventures, Eclipse, Fidelity, SanDisk, and T. Rowe Price. Jim Keller, a prominent microprocessor engineer and Tenstorrent CEO, told Bloomberg that the company decided to remain independent and raise more capital after it showed that its Galaxy servers could run DeepSeek models. The new capital will go toward scaling chips tailored for serving open-weight AI models and video generation. Tenstorrent is part of a wave of AI hardware startups trying to chip away at Nvidia’s dominance. Among them is Etched, an AI chip maker that was fielding investment offers at valuations of $40 billion or more,TechCrunch reportedearlier this month.

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Judge allows NAACP lawsuit over xAI data center pollution to move forward

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A federal judge denied a motion by xAI seeking to dismissan NAACP lawsuitaccusing the SpaceX-owned company of failing to obtain permits needed to operate the gas turbines powering its Colossus data center outside Memphis. Suing on behalf of the NAACP, the Southern Environmental Law Center said the AI company had “installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits.” It also accused xAI of violating the Clean Air Act. xAI sought to have the lawsuit dismissed,claiming that the turbines are exemptfrom permitting requirements because they’re mobile. The company also argued that the plaintiffs did not have the standing to sue. “Because the plaintiffs have statutory standing under the Clean Air Act, because the combustion turbines are not ‘mobile sources’ under Mississippi’s [State Implementation Plan], and because the citizen suit provision does not violate Article II of the Constitution or the private nondelegation doctrine, the plaintiffs’ claims will proceed,” Judge Debra M. Brown wrote inher decision. Focusing on xAI’s claim that these kinds of citizen lawsuits are unconstitutional, Judge Brown wrote, “Because citizen suit plaintiffs sue on their own behalf, in their own name, and seek penalties that redress harm to themselves, they are not exercising the federal government’s executive power.” TechCrunch has reached out to SpaceX for comment. Ina statement, the NAACP’s director of environmental and climate justice Abre’ Connor described this as “another important victory in our effort to hold xAI accountable.” (A similar motion to dismiss from the Department of Justice wasdenied earlier this month) “The courts have repeatedly rejected attempts by xAI and the DOJ to dismiss the NAACP’s Clean Air Act case, affirming our right to pursue justice for communities impacted by pollution,” Connor said. “Our position has been clear: xAI cannot operate gas turbines without the required permits.” The NAACP lawsuit is moving forward as public opinion seems to have turned sharply against data centers, with New York recentlypassing a moratorium on new data centersand other state and local governments considering similar measures. The backlash also prompted Amazon and Microsoft topromise to stop using NDAsin their dealings with government agencies, and it could bea significant factor in the imminent U.S. midterm elections.

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4 days left: How TechCrunch Founder Summit helps you make more useful connections to scale

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Apple CEO says the company doesn’t ‘want to ship AI for AI’s sake’

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