Tether, the company behind the world’s most widely used stablecoin, has put money into AI chip developer Tenstorrent. The stated goal is to increase access to AI computing infrastructure.
The investment came through Tether Capital, the firm’s investment branch. It landed as part of a much larger financing event, and the numbers attached to that event are hard to ignore.
A $1.5 billion round at a $6.2 billion valuation
On October 19, 2026, Tenstorrent announced it had completed a $1.5 billion Series E funding round. The deal set the company’s post-money valuation at $6.2 billion.
The jump is steep. Tenstorrent’s Series D in December 2024 valued the company at $2 billion, so the new figure more than doubles it.
Trace Capital and Innovation X led the raise. A long list of other financial firms joined, including ARK Invest and Fidelity Management, with Tether Capital among the notable participants.
What the money is for
Tenstorrent plans to use the capital in three main ways. It will scale production of its Galaxy servers, push forward on AI and CPU technology development, and expand its commercial operations globally.
The Galaxy servers are the headline product. Each one packs dozens of Tenstorrent’s AI chips into a single system.
Tenstorrent already counts major clients such as Samsung and LG among its users.
Why Tether is buying in
The investment fits a broader push at Tether toward decentralizing AI computing power. The idea is to reduce dependence on the handful of major cloud providers that currently control much of the world’s AI capacity.
What this means for the AI and crypto crossover
The most direct read is that Tether is becoming an active capital allocator in technology well beyond payments. A stake in a fast-growing AI hardware company is a bet on infrastructure, not on tokens.
For Tenstorrent, the cap table tells its own story. Pairing long-standing asset managers like Fidelity with growth-focused investors like ARK Invest, and adding a crypto-native backer on top, gives the company a wide mix of capital sources.
What to watch next: how quickly Tenstorrent scales Galaxy server output, whether new enterprise customers join Samsung and LG, and whether Tether Capital continues adding AI infrastructure names to its portfolio.
Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.