Qualcomm is negotiating to acquire AI chip startup Tenstorrent in a deal valued between $8 billion and $10 billion, according to reports from June 16, 2026. The acquisition would significantly boost Qualcomm’s position in the competitive artificial intelligence and data center chip markets.

Tenstorrent, founded in 2016 by Jim Keller, designs AI accelerator chips optimized for machine learning workloads. The company has been developing chips to compete against dominant players like Nvidia, focusing on efficient designs that reduce power consumption while maintaining performance.

The deal reflects Qualcomm’s broader strategy to expand beyond its traditional smartphone processor business into the lucrative AI infrastructure market. As companies invest hundreds of billions into AI systems, the chips powering those systems have become increasingly valuable.

Tenstorrent raised $693 million in Series D funding in December 2024, valuing the company at more than $2.6 billion. Investors included Jeff Bezos’ Bezos Expeditions, Samsung Securities, and other major venture firms. The company’s valuation has grown as AI chip demand has exploded across the industry.

The specific terms of any deal remain uncertain. Qualcomm and Tenstorrent have both declined to comment, citing standard practice on active negotiations. Deal terms often include performance-linked payments that could increase the final purchase price beyond the headline number.

If completed, the acquisition would give Qualcomm direct access to Tenstorrent’s technology and engineering talent. The company’s RISC-V architecture and AI-optimized design approach could complement Qualcomm’s existing chip portfolios.

No certainty exists that the companies will reach a final agreement. Tech acquisitions involving private companies often fall apart during due diligence as valuation disputes or strategic disagreements emerge.