Toronto-based Tenstorrent, which sells AI processors and licenses AI software solutions, has shifted its focus to licensing and services in recent years. It has established partnerships with India-based server system builder Bodhi Computing and LG to integrate its products into their servers and automotive products. However, the company faces stiff competition from tech giants like Google, Amazon, and Microsoft, which have developed their own AI chips.
Key takeaways:
- AI chips are predicted to account for up to 20% of the $450 billion total semiconductor market by 2025, with sales of AI chips expected to reach $83.3 billion in 2027.
- Tenstorrent, an AI hardware startup, has raised $100 million in a convertible note funding round co-led by Hyundai Motor Group and Samsung Catalyst Fund, with the funds to be used for product development and the design and development of AI chiplets and machine learning software.
- Tenstorrent has shifted its focus to licensing and services, and has established partnerships with Bodhi Computing and LG to incorporate its products into their servers and automotive products respectively.
- The AI chip market is highly competitive, with tech giants like Google, Amazon, and Microsoft developing their own AI chips, and a shortage in the components necessary to build AI chips adding to the challenges faced by startups and tech giants alike.