Samsung Securities, Hyundai, and LG Electronics Backed Tenstorrent — Now Qualcomm Is Circling at Up to $10 Billion
Three of Korea's largest companies invested in AI chip startup Tenstorrent at a $2.6 billion valuation 18 months ago. Qualcomm may hand them a 3-to-4-fold return.
Qualcomm is in advanced talks to acquire Tenstorrent, the AI accelerator startup led by chip-industry veteran Jim Keller, for between USD 8 billion and USD 10 billion, according to a report by The Information published June 15. The potential deal would rank among the largest acquisitions in the AI chip sector to date and would deliver an outsized windfall to the three Korean firms that co-led and participated in Tenstorrent's most recent funding round.
Who Is Tenstorrent — and Why Korea Bet on It
Founded in 2016 and headquartered in Toronto, Tenstorrent builds AI training and inference accelerators based on the open-source RISC-V architecture, positioning itself as a credible alternative to Nvidia's GPU-dominated ecosystem. Jim Keller, who joined as CEO, previously architected chips at Apple (A4, A5), oversaw Tesla's Full Self-Driving silicon, and held senior roles at Intel and AMD.
In December 2024, Tenstorrent closed its Series D round of USD 693 million at a post-money valuation of approximately USD 2.6 billion. The round was led by Samsung Securities (016360 KS) and AFW Partners. Strategic co-investors included Hyundai Motor Group (005380 KS), LG Electronics (066570 KS), Fidelity Management & Research, Baillie Gifford, Bezos Expeditions, and XTX Markets.
The three Korean conglomerates invested for distinct strategic reasons. Samsung Securities, as a financial institution, targeted venture upside in a high-growth AI hardware bet. Hyundai, building out its autonomous-vehicle chip roadmap, sought access to RISC-V architecture expertise. LG Electronics has an active collaboration with Tenstorrent to develop AI-enhanced chips for consumer and home appliance applications.
The Qualcomm Math
If the deal closes anywhere within the USD 8-10 billion range, it would represent roughly a 3.1-to-3.8-fold step-up over the Series D post-money valuation of USD 2.6 billion — a materially compressed timeline of under two years. Neither Qualcomm nor Tenstorrent has confirmed the talks, and The Information noted that final pricing could shift or negotiations could fall apart entirely.
Intel was also reported to be circling Tenstorrent as a potential acquirer as recently as May 2026, according to Bloomberg, suggesting competitive tension that could further support the price.
Qualcomm's Rationale: Away from Handsets
Qualcomm generates the majority of its revenue from smartphone chips. Acquiring Tenstorrent would fast-track its push into data center AI accelerators and autonomous vehicle processors — two markets where its current product lineup is limited.
The timing is deliberate: the AI chip market is bifurcating rapidly between Nvidia's GPU infrastructure and a growing cohort of RISC-V-based custom silicon buyers, including cloud hyperscalers and automotive OEMs. Tenstorrent's customer traction in both verticals gives Qualcomm a credible foothold in neither legacy space.
Implications for Korean Investors
A successful exit at USD 8-10 billion would crystallize gains for all three Korean Series D participants. The exact stake sizes were not publicly disclosed. For Samsung Securities, leading the round typically implies a larger allocation than co-investors, though the financial terms of individual tranches remain private. Hyundai Motor Group and LG Electronics would benefit both financially and strategically — Hyundai gaining continued access to the RISC-V stack it has embedded in its vehicle development pipeline, LG Electronics potentially securing preferential terms on the AI chip collaboration that underpinned its investment thesis.
The acquisition, if completed, would also confirm the valuation trajectory for Korean institutional investors broadening into global deep-tech venture, an area where domestic capital has historically been underrepresented relative to Silicon Valley and SoftBank-backed funds.
Key Numbers at a Glance
| Metric | Value |
|---|---|
| Qualcomm Bid (reported) | USD 8-10 billion |
| Tenstorrent Series D Valuation | USD 2.6 billion (Dec 2024) |
| Series D Amount | USD 693 million |
| Implied Return Multiple | ~3.1-3.8× |
| Korean Investors | Samsung Securities (lead), Hyundai Motor Group, LG Electronics |
| Series D Lead | Samsung Securities + AFW Partners |
| Tenstorrent CEO | Jim Keller |
| Tenstorrent Founded | 2016 (Toronto) |
Qualcomm and Tenstorrent have not commented publicly. The Information reports the talks are ongoing and the deal may not close.
Sources: The Information (June 15, 2026), Bloomberg (May 2026), Yahoo Finance/Reuters, HPCwire, Tenstorrent press release (Dec 2, 2024), GGRAsia
