TensorWave Secures $100M to Expand AMD-Powered AI Infrastructure

TensorWave raises $100M to grow its AMD-powered cloud infrastructure | TechCrunch

TensorWave, a data center provider building facilities primarily with AMD hardware, has raised $100 million as it seeks to further build out its data center infrastructure. The funding round was led by Magnetar and AMD Ventures, and brings the company's total capital raised to $146.7 million, according to Crunchbase. Maverick Silicon, Nexus Venture Partners and Prosperity7 also participated in the round. It's a precarious time for data center projects. Tariff-related price hikes on components like server racks and chips could contribute to overall data center build costs increasing by 5% to 15%, per an analysis by TD Cowen. Investors are also wary of such projects accumulating too much capacity, particularly as the number of cheap AI services continues to grow. Overcapacity is reportedly one of the factors delaying OpenAI's ambitious $500-billion Stargate data center project. Las Vegas, Nevada-based TensorWave claims that it hasn't seen a slowdown in business, however. The company is on track to end the year with run-rate revenue of more than $100 million, which would mark a 20x increase from a year earlier, according to CEO Darrick Horton (pictured above; in the middle). Nvidia is the favored hardware vendor for data centers that are used for training and running AI models. But TensorWave embraced AMD early on, aiming to provide cloud services at lower prices. TensorWave recently deployed a "dedicated training" cluster of around 8,000 AMD Instinct MI325X GPUs. The new capital will enable the company to grow that cluster, as well as expand headcount and support "operational growth," said Horton. TensorWave has a team of around 40 people at present, and expects headcount to reach over 100 by the end of the year. "This $100 million funding propels TensorWave's mission to democratize access to cutting-edge AI compute," Horton added. "Our 8,192 Instinct MI325X GPU cluster marks just the beginning as we establish ourselves as the emerging AMD-powered leader in the rapidly expanding AI infrastructure market." Other data center providers placing bets on AMD's AI chips range from startups like Lamini and Nscale to larger, more entrenched cloud providers such as Azure and Oracle. Horton co-founded TensorWave with Jeff Tatarchuk (pictured above; on the left) and Piotr Tomasik (pictured above; on the right) in 2023. Tatarchuk had previously launched cloud vendor VMAccel with Horton, and sold another startup, Lets Rolo, to digital identity firm LifeKey. Horton co-founded crypto mining company VaultMiner Technologies, VMAccel's corporate parent. As for Tomasik, he co-launched influencer marketer site Influential, and is the second co-founder of Lets Rolo.

AI infrastructure firm TensorWave raises $100 million in latest funding

May 14 (Reuters) - TensorWave, a Las Vegas-based startup, announced on Wednesday that it has secured $100 million in the latest funding round, as it aims to capitalize on the rapidly expanding AI infrastructure market. The company, however, did not disclose the valuation at which the funding was raised. The Series A funding round was led by Magnetar and AMD Ventures along with participation from existing partners, including Maverick Silicon and Nexus Venture Partners, and new investor Prosperity7. With the growing demand for AI computing resources, companies such as TensorWave are emerging as key players by offering the tools and infrastructure required to efficiently train AI models and optimize workloads. "The funding comes at a time when the AI infrastructure market is experiencing unprecedented growth, with recent industry reports projecting the AI infrastructure market to exceed $400 billion by 2027", the company said. With the latest fundraise, the startup plans to scale operations, expand its team and accelerate the deployment of AMD-powered GPU clusters tailored for AI model training. "This $100M funding propels TensorWave's mission to democratize access to cutting-edge AI compute," said TensorWave CEO Darrick Horton. Reporting by Priyanka.G in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

TensorWave raises $100M to build out AI training cluster data center with 8,000+ AMD GPUs - SiliconANGLE

TensorWave raises $100M to build out AI training cluster data center with 8,000+ AMD GPUs TensorWave Inc., a graphics processing unit cloud platform for artificial intelligence that's focused on offering an alternative to Nvidia Corp.'s market dominance through Advanced Micro Devices Inc. chips, announced today that it has raised $100 million in an early-stage funding round led by Magnetar and AMD Ventures. The Series A funding builds on the company's earlier $43 million round and includes continued backing from Maverick Silicon and Nexus Venture Partners, as well as new participation from Prosperity7. The investment coincides with the deployment of 8,192 AMD Instinct MI325X GPUs for a dedicated AI training cluster located in a data center campus in Tucson, Arizona. According to the company, this move positions TensorWave as a significant player in the AI infrastructure ecosystem and expands market access to alternative chipsets. Half of that funding will help bankroll the rollout, Piotr Tomasik, co-founder and president of TensorWave, told SiliconANGLE in an interview. The company has already deployed 1,000 GPUs at its facility and will complete the installation by the end of June. Nvidia Corp. currently dominates the AI data center training and inference chip market with 65% to 70% share, according to an estimate from market analysis firm Commodity IQ. "It's still very much a monopolistic market," Tomasik said. "There are very small cases that can use Amazon's Trainium or Grok or any of these neural processing units. But notably there are a number of hyperscalers and enterprises that want to diversify their workloads over more than just Nvidia GPUs. Not just because of cost savings, but because there are cases where AMD shines." Those use cases include video image generation models and new mixture-of-experts AI architectures. Tomasik explained that AMD's chipsets provide additional memory headroom and performance reliability for next-generation models. The global AI market was estimated at $233 billion in 2024 and is expected to grow from $294 billion in 2025 to approximately $1.7 trillion by 2032, according to market research firm Fortune Business Insights. Cloud infrastructure dominated the market in 2024, and AI continues to evolve rapidly as more enterprises adopt, invest in, and develop AI tools. "We're sold out currently with our MI300s," Tomasik said. "This allows us more capacity to sell our customers." He hinted at a major customer deal that will be bringing in a two-year $40 million agreement off the back of the new 8,000 AMD GPU installation, but didn't provide details. With the remainder of the funding, Tomasik said TensorWave plans to expand its workforce from 40 to more than 100 employees. The company also intends to develop more AMD-specific tooling atop its platform to improve the developer experience and drive adoption of AMD accelerators.

TensorWave Raises $100 Million in Series A Funding | AIM

The new round of financing will help TensorWave expand its operations and increase its workforce. TensorWave is a GPU cloud provider that focuses on delivering cutting-edge AI compute capabilities via AMD Instinct's GPUs. Recently, the company raised $100 million in its series A funding round. The round was led by Magnetar Capital and AMD Ventures, with additional participation from existing investors Maverick Silicon, Nexus Venture Partners and Prosperity7 Ventures. This investment builds on TensorWave's previous $43 million raised in simple agreements for future equity (SAFE) funding, which closed in October 2024. The new round of financing will help TensorWave expand its operations, increase its workforce, and accelerate the deployment of its 8,192 Instinct MI325X-powered training cluster. This AI compute infrastructure represents the start of TensorWave's attempt to establish itself as a leader in the rapidly increasing AI infrastructure market. The company focuses on offering accessible, scalable compute services powered by AMD's technology. Darrick Horton, CEO of TensorWave, stated, "This $100 million funding propels TensorWave's mission to democratise access to cutting-edge AI compute. Our Instinct MI325X GPU cluster marks just the beginning as we aim to become the emerging leader in the AMD-powered AI infrastructure ecosystem." Meanwhile, Mathew Hein, chief strategy officer and SVP of corporate development at AMD, praised TensorWave for its role in the evolving AI ecosystem. "The new funding will allow TensorWave to grow its operations, increase its workforce, and accelerate the deployment of its 8,192 Instinct MI325X-powered training cluster." "TensorWave is not just bringing more compute but, rather, an entirely new class of compute to a capacity-constrained market...We think this will be highly beneficial to the AI infrastructure ecosystem writ large, and we're thrilled to continue our support of the company," Kenneth Safar, managing director of Maverick Capital, said. Moreover, TensorWave has secured an AI infrastructure agreement with TECfusions, which will lease 1 GW of AI capacity across TECfusions' data centre portfolio.

TensorWave Rides the AI Infrastructure Tidal Wave with $100 Million Funding Injection

In a market clamoring for more computational muscle to power the insatiable demands of artificial intelligence, a new contender has emerged from the silicon shadows. TensorWave, a company laser-focused on delivering AI infrastructure built around AMD's cutting-edge silicon, announced a significant milestone today: a $100 million Series A funding round co-led by investment heavyweight Magnetar and AMD's venture arm. This substantial capital infusion signals a serious intent to disrupt a landscape currently dominated by a few key players. This isn't TensorWave's first foray into the funding arena, having previously secured a SAFE round. However, this Series A represents a significant leap, providing the financial firepower to rapidly deploy a massive training cluster boasting over 8,000 of AMD's latest and greatest Instinct MI325X GPUs. For those keeping score at home, that's a serious amount of parallel processing power, hinting at TensorWave's ambition to become a key artery in the flow of AI compute. The timing couldn't be more opportune. As CEO Darrick Horton rightly points out, this funding will "democratize access to cutting-edge AI compute." In a world where access to high-performance AI hardware often feels like navigating a velvet rope, TensorWave is positioning itself as a more accessible gateway. Its projected year-end revenue run rate exceeding $100 million - a staggering 20x year-over-year increase - speaks volumes about the traction it's already gaining. It follows the $43m in SAFE funding it raised in October 2024. President Piotr Tomasik further emphasizes the strategic nature of this move, highlighting the company's focus on "strategic partnerships and investor relationships" to tackle the "critical infrastructure bottleneck facing AI adoption." The deployment of its MI325X cluster isn't just about adding more servers; it's about architecting an "entirely new category of enterprise-ready AI infrastructure" capable of handling next-generation AI models' memory and performance demands. This suggests a thoughtful approach beyond simply throwing hardware at the problem. AMD's strategic investment through its venture arm is a particularly noteworthy endorsement. Mathew Hein, SVP Chief Strategy Officer & Corporate Development at AMD, sees TensorWave as a "key player in the growing AMD AI ecosystem," underscoring the symbiotic relationship and AMD's commitment to ensuring its advanced silicon is readily available for AI innovation. Even Maverick Silicon, which participated in previous funding rounds, remains bullish. Managing Director Kenneth Safar lauds TensorWave for bringing "an entirely new class of compute to a capacity-constrained market," suggesting that TensorWave's offering goes beyond mere incremental improvements. The broader context is the explosive growth of the AI infrastructure market, projected to balloon to over $400 billion within the next two years. TensorWave, with its focus on AMD's high-performance GPUs and strategic partnerships, including its collaboration with TECFusions, appears well-positioned to carve out a significant slice of this burgeoning pie. While the competitive landscape remains fierce, TensorWave's focused approach on AMD hardware, coupled with this substantial funding injection and impressive early traction, makes it a compelling player to watch. The democratization of AI compute power is not just a buzzword; it's a necessity for continued innovation. TensorWave, armed with cutting-edge silicon and significant financial backing, is betting it can be a key enabler in this crucial evolution. The industry will keenly observe its next moves as it scales its operations and challenges the established order.

AI infrastructure firm TensorWave raises $100 million in latest funding

(Reuters) -TensorWave, a Las Vegas-based startup, announced on Wednesday that it has secured $100 million in the latest funding round, as it aims to capitalize on the rapidly expanding AI infrastructure market. The company, however, did not disclose the valuation at which the funding was raised. The Series A funding round was led by Magnetar and AMD Ventures along with participation from existing partners, including Maverick Silicon and Nexus Venture Partners, and new investor Prosperity7. With the growing demand for AI computing resources, companies such as TensorWave are emerging as key players by offering the tools and infrastructure required to efficiently train AI models and optimize workloads. "The funding comes at a time when the AI infrastructure market is experiencing unprecedented growth, with recent industry reports projecting the AI infrastructure market to exceed $400 billion by 2027", the company said. With the latest fundraise, the startup plans to scale operations, expand its team and accelerate the deployment of AMD-powered GPU clusters tailored for AI model training. "This $100M funding propels TensorWave's mission to democratize access to cutting-edge AI compute," said TensorWave CEO Darrick Horton. (Reporting by Priyanka.G in Bengaluru; Editing by Vijay Kishore)