AI chip startup Tenstorrent has raised $693 million in a funding round that also included Amazon founder Jeff Bezos and other major investors. This development shows that competition in the AI hardware sector is heating up. The funding round was led by AFW Partners and Samsung Securities. Bezos Expeditions, LG Electronics, and Fidelity were also among the co-investors.
Nvidia invests $700 million for rival Tenstorrent
This significant capital infusion will support Tenstorrent’s plans to expand its design centers, develop open-source AI software, and build hardware systems. The company aims to be an alternative to market leader Nvidia. Tenstorrent Chief Operating Officer Keith Witek said that the company is excited about the various investors who share its vision.
The investor group consists of financial and strategic partners as well as key individuals who see strong potential in Tenstorrent’s AI roadmap. Unlike Nvidia’s patented GPU systems and CUDA software; Tenstorrent follows a more open-source strategy. The company focuses on customizable processor designs and RISC-V IP licensing through open source projects.
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The Tenstorrent chip with Tensix cores supports customizable silicon through open source software. The General Manager of AFW Partners also drew attention to Tenstorrent’s market momentum, technology roadmap and open source software. He expressed that they are excited to support the company’s future growth and success.
The investment made by Bezos and other major players draws attention to the increasing value of the AI chip market and alternative approaches that could challenge Nvidia’s position. As the demand for AI applications continues to increase, Tenstorrent is expected to grow.
