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Bezos Backs AI Chipmaker Vying With Nvidia at $2.6 Billion Value

Dec 02, 2024 - financialpost.com
Amazon founder Jeff Bezos and Samsung have invested $700 million in AI chip startup Tenstorrent, bringing its valuation to approximately $2.6 billion. The company aims to challenge Nvidia's dominance in the AI business with its own chip. The funding round was led by South Korea's AFW Partners and Samsung Securities, and also saw participation from LG Electronics Inc. and Fidelity.

The investment will be used to expand Tenstorrent's engineering team, invest in its global supply chain, and build large AI training servers to showcase its technology. The company is also developing an alternative logic processor based on an open standard called RISC-V. Tenstorrent plans to release a new AI processor every two years, while Nvidia plans to refresh its AI chip offerings annually.

Key takeaways:

  • Amazon.com Inc. founder Jeff Bezos and Samsung have invested $700 million in AI chip startup Tenstorrent, bringing its valuation to approximately $2.6 billion.
  • Tenstorrent aims to challenge Nvidia Corp.'s dominance in the AI business with its own chip design.
  • The funding will be used to expand Tenstorrent’s engineering team, invest in its global supply chain, and build large artificial intelligence training servers.
  • Tenstorrent is also promoting an alternative logic processor based on an open standard called RISC-V, posing a challenge to Arm Holdings Plc.
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