Qualcomm reportedly in talks to acquire AI chip-design company Tenstorrent

Qualcomm is in talks to acquire AI chip-design company Tenstorrent for $8 billion to $10 billion, according to The Information. The deal would signal Qualcomm's push into the AI data center market as its handset chip business struggles. Qualcomm shares have surged over 60% on AI optimism, and CEO Cristiano Amon has announced initial AI chip shipments to a leading hyperscaler.

Qualcomm reportedly in talks to acquire AI chip-design company Tenstorrent Qualcomm https://robinhood.com/us/en/stocks/QCOM/?source=sherwood is in talks to acquire AI chip design firm Tenstorrent for $8 billion to $10 billion, according to The Information https://www.theinformation.com/articles/qualcomm-talks-buy-tenstorrent-expand-ai-chip-capabilities?rc=ysgipa . This transaction, if completed, would be another concrete signal of the San Diego-based chip company’s attempt to carve out a niche in the upstream AI space data centers , rather than focusing on end-user devices. Qualcomm’s key business of handset chips has fallen on hard times, particularly in China, due to the memory chip shortage. Less than eight weeks ago, the chip company was the lowlight in the Philadelphia Semiconductor Index, down about 20% year-to-date. Shares proceeded to surge over 60%, buoyed by optimism that the rising AI tide will lift all boats. With the release of Q2 earnings, CEO Cristiano Amon said that initial shipments of AI chips to a “leading hyperscaler” were on track https://sherwood.news/markets/qualcomm-q2-earnings-guidance-memory-crunch-ai-boom-chips/ for later this year, and to expect more on the company’s AI growth plans at its investor day on June 24 next week . Last month, Bloomberg reported that Qualcomm is poised to sell "millions" of AI chips https://sherwood.news/markets/qualcomm-spikes-after-report-that-its-selling-millions-of-ai-chips-to-tiktok-owner-bytedance/ to TikTok parent ByteDance. Established AI chip giants and hyperscalers alike have reached agreements with or gobbled up burgeoning AI chip companies as the boom rolls on. In December, Nvidia announced a major licensing deal with AI inference specialist Groq https://sherwood.news/markets/nvidia-strikes-licensing-agreement-with-ai-chip-inference-specialist-groq/ , while Meta bought AI chip startup Rivo https://sherwood.news/tech/meta-buys-chip-startup-rivos-in-effort-to-lower-its-reliance-on-nvidia/ s in September.