Qualcomm in talks to buy Tenstorrent: Report

Qualcomm is in talks to acquire AI chip startup Tenstorrent for $8 billion to $10 billion, The Information reported on Monday citing a person with knowledge of the deal.

Shares of Qualcomm ‌fell about ⁠1% ⁠in extended trading.

The talks were ongoing and the ​price could change, or the discussions could fall ​apart, according to the report. It was not clear if the price will ​include performance-based milestone payments, a ⁠structure used ‌in the past to ​buy chip ​startups, the Information added.


Qualcomm and ⁠Tenstorrent did not immediately respond to ​Reuters' requests for comment. Reuters could ​not independently verify the report.

One of the world's largest suppliers of smartphone chips, Qualcomm has increasingly sought to reduce its dependence on the cyclical handset ‌market by expanding into high-growth segments such as data center processors ​and autonomous ​vehicle chips.

Founded ⁠in 2016, Tenstorrent is headed by Jim Keller, a former Apple chip designer who also oversaw Tesla's efforts to design a chip for autonomous driving.

The startup develops accelerators for training AI models and running AI applications.