TensorWave Inc., a graphics processing unit cloud platform for artificial intelligence that’s focused on offering an alternative to Nvidia Corp.’s market dominance through Advanced Micro Devices Inc. chips, announced today that it has raised $100 million in an early-stage funding round led by Magnetar and AMD Ventures.
The Series A funding builds on the company’s earlier $43 million round and includes continued backing from Maverick Silicon and Nexus Venture Partners, as well as new participation from Prosperity7.
The investment coincides with the deployment of 8,192 AMD Instinct MI325X GPUs for a dedicated AI training cluster located in a data center campus in Tucson, Arizona. According to the company, this move positions TensorWave as a significant player in the AI infrastructure ecosystem and expands market access to alternative chipsets.
Half of that funding will help bankroll the rollout, Piotr Tomasik, co-founder and president of TensorWave, told News in an interview. The company has already deployed 1,000 GPUs at its facility and will complete the installation by the end of June.
Nvidia Corp. currently dominates the AI data center training and inference chip market with 65% to 70% share, according to an estimate from market analysis firm Commodity IQ.
“It’s still very much a monopolistic market,” Tomasik said. “There are very small cases that can use Amazon’s Trainium or Grok or any of these neural processing units. But notably there are a number of hyperscalers and enterprises that want to diversify their workloads over more than just Nvidia GPUs. Not just because of cost savings, but because there are cases where AMD shines.”
Those use cases include video image generation models and new mixture-of-experts AI architectures. Tomasik explained that AMD’s chipsets provide additional memory headroom and performance reliability for next-generation models.
The global AI market was estimated at $233 billion in 2024 and is expected to grow from $294 billion in 2025 to approximately $1.7 trillion by 2032, according to market research firm Fortune Business Insights. Cloud infrastructure dominated the market in 2024, and AI continues to evolve rapidly as more enterprises adopt, invest in, and develop AI tools.
“We’re sold out currently with our MI300s,” Tomasik said. “This allows us more capacity to sell our customers.”
He hinted at a major customer deal that will be bringing in a two-year $40 million agreement off the back of the new 8,000 AMD GPU installation, but didn’t provide details.
With the remainder of the funding, Tomasik said TensorWave plans to expand its workforce from 40 to more than 100 employees. The company also intends to develop more AMD-specific tooling atop its platform to improve the developer experience and drive adoption of AMD accelerators.
Image: News/Microsoft Designer
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