TensorWave Secures $100M to Expand AMD-Powered Cloud Services
▼ Summary
– TensorWave raised $100 million in funding, led by Magnetar and AMD Ventures, bringing its total capital raised to $146.7 million.
– Data center projects face challenges, including potential 5%-15% cost increases due to tariffs and investor concerns over capacity overbuilding.
– TensorWave reports strong growth, projecting over $100 million in run-rate revenue by year-end, a 20x increase from the previous year.
– The company focuses on AMD hardware, recently deploying 8,000 AMD GPUs, and aims to expand its cluster and team with the new funding.
– TensorWave’s co-founders include Jeff Tatarchuk and Piotr Tomasik, who have prior experience in cloud and tech startups.
TensorWave has secured $100 million in fresh funding to accelerate its expansion as a cloud services provider leveraging AMD’s powerful hardware infrastructure. The investment round was spearheaded by Magnetar and AMD Ventures, with participation from Maverick Silicon, Nexus Venture Partners, and Prosperity7. This brings the company’s total funding to $146.7 million as it scales operations in a competitive AI infrastructure market.
The timing is notable—data center construction costs are rising due to tariffs on critical components like server racks and chips, with estimates suggesting a 5-15% price surge. Meanwhile, concerns linger about overcapacity as more affordable AI solutions flood the market, even impacting high-profile projects like OpenAI’s delayed Stargate initiative.
Despite these industry headwinds, TensorWave reports explosive growth, projecting over $100 million in annualized revenue by year-end—a staggering 20-fold increase from 2023. CEO Darrick Horton attributes this momentum to the company’s early bet on AMD’s Instinct MI325X GPUs as a cost-efficient alternative to Nvidia’s dominant data center offerings.
The funding will fuel the expansion of TensorWave’s existing 8,000-GPU training cluster, operational scaling, and workforce growth. Currently employing 40 people, the company expects to surpass 100 employees by December. “This investment allows us to redefine accessibility in AI infrastructure,” Horton emphasized, positioning TensorWave as a rising leader in AMD-powered cloud solutions.
Competitors like Lamini, Nscale, and major providers such as Azure and Oracle are also adopting AMD’s AI chips, but TensorWave differentiates itself through aggressive infrastructure deployment. The Las Vegas-based startup was co-founded in 2023 by Horton, Jeff Tatarchuk, and Piotr Tomasik—all serial entrepreneurs with exits in cloud computing and digital identity sectors.
With AI demand showing no signs of slowing, TensorWave’s latest capital infusion signals confidence in its strategy to challenge incumbents with high-performance, budget-conscious alternatives. The company’s trajectory suggests AMD’s hardware could play an increasingly pivotal role in reshaping the economics of AI infrastructure.
(Source: TechCrunch)
