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Nvidia Challenger Tenstorrent Gets $700 Million to Bolster AI Tech | PYMNTS.com

Dec 02, 2024 - pymnts.com
AI chip startup Tenstorrent has raised $700 million in funding from investors including Amazon founder Jeff Bezos and Samsung, valuing the company at approximately $2.6 billion. The company plans to use the funding to expand its engineering team, invest in its supply chain, and develop large AI training servers to showcase its technology. Tenstorrent aims to provide a more cost-effective alternative to Nvidia's high-bandwidth memory components, and is advocating for a different type of logic processor based on the open standard RISC-V.

Tenstorrent's founder, Jim Keller, a veteran of Apple, Tesla, and AMD, stated that open source technology helps to build a larger platform and attracts engineers. The company plans to introduce a new AI processor every two years. Meanwhile, Nvidia CEO Jensen Huang stated that his company will update its chips annually and expects the growth and modernization of the AI industry to continue for several years.

Key takeaways:

  • AI chip startup Tenstorrent has raised $700 million in funding from investors including Amazon founder Jeff Bezos and Samsung, valuing the company at approximately $2.6 billion.
  • Tenstorrent plans to use the funding to expand its engineering team, invest in its supply chain, and develop large AI training servers to showcase its technology.
  • Tenstorrent is aiming to provide a more cost-effective alternative to Nvidia's high-bandwidth memory (HBM) components, and is advocating for an alternative kind of logic processor based on the open standard RISC-V.
  • Tenstorrent's founder, Jim Keller, has stated that the company aims to introduce a new AI processor every two years, while Nvidia plans to update its chips annually.
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