Tenstorrent bets big on chiplets with Blue Cheetah takeover

Tenstorrent's Blue Cheetah deal boosts US chiplet race, Al chip design, and CHIPS Act ambitions.

17 Jul 2025

America's race to reinvent its chip industry just picked up speed. In mid-July, Al hardware firm Tenstorrent announced it had acquired Blue Cheetah, a small but crucial player in chiplet interconnects. The deal gives Tenstorrent tighter control over one of the most complex pieces of processor design and strengthens U.S. ambitions to stay ahead in semiconductors.

Chiplets, often likened to Lego bricks, let designers piece together smaller chips into powerful processors. The real test is how quickly those pieces can talk to each other. Blue Cheetah's interconnect technology tackles that challenge, allowing seamless data flow across chiplets. By folding that expertise into its own operations, Tenstorrent reduces its dependence on outside suppliers while sharpening its edge in the Al chip market.

The move reflects a wider consolidation trend. Once dominated by small, specialized firms, the chiplet ecosystem is coalescing around companies with the resources to own key technologies. Qualcomm's pending purchase of Alphawave Semi, announced in June, signals the same direction. For Tenstorrent, absorbing Blue Cheetah ensures it will not be left scrambling for one of the most essential building blocks in chip design.

CEO Jim Keller framed the takeover as both protective and collaborative. The company recently opened its Open Chiplet Architecture spec, signaling it still wants industry-wide adoption even as it locks down critical components.

There are geopolitical dimensions too. By keeping interconnect know-how under U.S. control, Tenstorrent's acquisition aligns neatly with the goals of the CHIPS Act, which aims to reduce reliance on overseas suppliers. The downside is that smaller firms who once depended on Blue Cheetah may now find fewer options.

Still, the trajectory is clear. As chiplets gain traction, Tenstorrent has planted its flag. The question is whether this wave of consolidation accelerates breakthroughs or simply fuels a new round of rivalries.