Tether Capital, the investment arm of the stablecoin issuer, has participated in a Series E funding round for AI chip developer Tenstorrent. The financing event, which concluded on October 19, 2026, raised $1.5 billion and brought the company's post-money valuation to $6.2 billion.
The round was led by Trace Capital and Innovation X, with participation from firms including ARK Invest and Fidelity Management. This valuation marks a significant increase from the $2 billion valuation Tenstorrent achieved during its Series D round in December 2024.
Tenstorrent intends to allocate the new capital toward scaling the production of its Galaxy servers, which utilize dozens of the company's AI chips per system. Additionally, the funds will support the development of AI and CPU technologies and the global expansion of commercial operations.
The company currently serves major clients, including Samsung and LG. For Tether, this investment aligns with a strategic initiative to decentralize AI computing infrastructure and reduce reliance on dominant cloud service providers.
