TensorWave raises $350M Series B to expand AMD data centers

A Las Vegas-based artificial intelligence infrastructure startup has secured a major investment as it seeks to expand its alternative to the dominant market position held by Nvidia. TensorWave announced on June 11 that it raised $350 million in a Series B funding round, valuing the company at $1.55 billion. The investment was co-led by Magnetar and AMD Ventures, the venture arm of chipmaker Advanced Micro Devices, with participation from Maverick Silicon, Nexus Venture Partners, and Western Frontier.

The funding marks a significant step for TensorWave, which was founded in December 2023 and operates exclusively on AMD's hardware and software. The company provides cloud-based access to high-performance AI accelerators for both training and running AI models. TensorWave's chief executive, Darrick Horton, stated the company deliberately avoids Nvidia's products, arguing that the market needs more competition. He explained the goal is to solve customer problems and restore market balance, expressing a general aversion to dealing with monopolies.

The new capital will fuel a rapid expansion of TensorWave's data center infrastructure. The company currently operates three facilities in...