Qualcomm in Talks to Buy Tenstorrent to Expand AI Chip Capabilities

Qualcomm has been in talks to buy Tenstorrent, a startup that designs chips for AI, according to a person with direct knowledge of the deal. The two companies have discussed a price between at least $8 billion and $10 billion, the person said, which would be a significant premium to Tenstorrent’s last valuation.

It’s not clear if the price would include payments tied to performance milestones, as has been the case with past acquisitions of chip startups. The talks are ongoing and the price could change, or the discussions could fall apart. The acquisition of Tenstorrent would give Qualcomm a boost in expanding its offering in AI and data center chips.