TOKYO, JAPAN – October 20, 2026 – Preferred Networks, Inc. (PFN) and Tenstorrent USA, Inc. (Tenstorrent) have announced today that their joint proposal has been selected by Japan’s New Energy and Industrial Technology Development Organization (NEDO) for the theme "xPU Design and Development Incorporating Photonics-Electronics Integration Technology" (*1) under the NEDO-sponsored “Research and Development Project of the Enhanced Infrastructures for Post-5G Information and Communication Systems / Development of manufacturing technologies for advanced semiconductors.”

AI models and workloads continue to increase in size and computational complexity, and are being adopted across a wide range of industries. This rapid growth has further increased the compute needed for model training and inference, driving demand for more scalable and efficient AI infrastructure. 

Through a joint research and development project, PFN and Tenstorrent aim to develop a system-level integration of AI processors that delivers high performance and high efficiency for both training and inference. The project targets the next wave of AI deployment across diverse industrial and academic fields, including agentic AI, physical AI, and scientific AI. 

As part of the project, PFN and Tenstorrent will conduct a research and development program for five years based on the division of responsibilities outlined below.  The companies will subsequently work to commercialize the research outcomes for applications including AI agents. 

• Development of system integration technologies for AI processors leveraging photonics-electronics integration and advanced packaging technologies (PFN and Tenstorrent)
• Development of AI chiplets with ultra-high memory bandwidth enabled by 3D memory stacking technologies based on leading-edge semiconductor process technologies (PFN)
• Development of CPU chiplets built on an open architecture, which support confidential computing (Tenstorrent)

The following activities will be carried out in collaboration with subcontractors:

• Research and development of domain-specific applications toward the realization of scientific AI and physical AI (The University of Tokyo, Kobe University, Toyo University, Japan Agency for Marine-Earth Science and Technology, and Japan Atomic Energy Agency)
• Design of CPU chiplets and development of software which enable confidential computing (Tenstorrent Japan)

(*1) Notification issued on October 20, 2026 on the selection for the "Research and Development Project of the Enhanced Infrastructures for Post-5G Information and Communication Systems / Development of manufacturing technologies for advanced semiconductors": https://www.nedo.go.jp/koubo/IT3_100387.html [Japanese] 

About Preferred Networks
Guided by its mission to “Make the real world computable and create the future together,” Preferred Networks, Inc. (PFN) develops advanced software and hardware technologies through a vertically integrated approach spanning the entire AI value chain—from AI chips and computing infrastructure to generative AI foundation models and solutions across a wide range of industries. Founded in 2014 in Tokyo, PFN currently develops and delivers the MN-Core™ series of AI processors, the PFCP™ cloud platform for AI computing, and the Japan-developed generative AI foundation model PLaMo™. 

About Tenstorrent
Tenstorrent is an AI compute company led by CEO Jim Keller - architect of Apple A4/A5, AMD Zen, and Tesla's Full Self-Driving chip. The company builds RISC-V-based AI processors and systems for developers, enterprises, and sovereign infrastructure worldwide. In addition to servers and workstations, Tenstorrent licenses its TT-Ascalon RISC-V CPU and Tensix AI cores to chip designers including Samsung and LG. Backed by Bezos Expeditions, Samsung, LG Electronics, Hyundai Motor Group, Fidelity, and others, Tenstorrent has raised over $1B+ and operates from Santa Clara, Austin, Toronto, Belgrade, Tokyo, and Bangalore.