Tenstorrent Raises $693 Million to Challenge Nvidia in the AI Chip Market

Tenstorrent, a startup computing company that develops powerful AI hardware and software, has just closed a massive $693 million Series D funding round. The round was led by Samsung Securities and AFW Partners, and also included investments from high-profile backers like Jeff Bezos and LG Electronics.

This latest funding round values Tenstorrent at around $2.6 billion, highlighting the significant investor interest and confidence in the company's potential to disrupt the AI chip market currently dominated by industry giant Nvidia.

Tenstorrent was founded in 2016 by a team of experienced microprocessor engineers, and in 2020 they brought on Jim Keller, a renowned chip architect known for his work at companies like Apple and Tesla, as the company's CTO. Keller was recently promoted to CEO in 2023.

The startup's mission is to offer more affordable and interoperable AI hardware and software solutions compared to Nvidia's proprietary approach. Tenstorrent advocates the use of the open-source RISC-V instruction set architecture, which the company believes will make it easier for customers to integrate its chips with other technologies.

"In the past, I worked with proprietary tech, and it was really tough," Keller told Bloomberg. "Open source helps you build a bigger platform. It attracts engineers. And yes, it's a little bit of a passion project."

While Tenstorrent is still a fraction of Nvidia's size, this latest funding round will allow the startup to accelerate its product development and challenge Nvidia's dominant position in the lucrative AI chip market. With the backing of high-profile investors like Bezos and Samsung, Tenstorrent is well-positioned to make significant inroads in the years to come.

As the demand for powerful AI capabilities continues to grow across industries, the competition between Tenstorrent and Nvidia is sure to heat up. This latest funding round is a clear sign that investors see Tenstorrent as a serious contender in the race to provide the next generation of AI hardware and software solutions.