Amazon’s Founder Jeff Bezos Backs Tenstorrent with $693M to Battle Nvidia
Tenstorrent, a rising AI chip manufacturer, secures $693M in Series D funding led by Samsung Securities and AFW Partners, with backing from Jeff Bezos, as it aims to challenge Nvidia's market dominance with innovative open-source solutions.
In a bold move to challenge Nvidia's dominance in the AI chip market, Tenstorrent, a Toronto-born AI hardware company now headquartered in Santa Clara, California, has raised a staggering $693 million in its Series D funding round. The round, which values the company at $2.6 billion, saw investments from industry heavyweights, including Samsung Securities, Hyundai, LG Electronics, and Bezos Expeditions, the personal investment arm of Amazon founder Jeff Bezos.
Tenstorrent has captured attention with its latest funding round, securing $693 million from an impressive roster of investors, including Jeff Bezos' Bezos Expeditions, LG Electronics, Fidelity Management, Hyundai Motor Group, and several Canadian institutions. This significant backing reflects strong confidence in Tenstorrent’s innovative technology and its leadership under renowned chip architect Jim Keller.
The company aims to accelerate its development of AI processors and software stacks, focusing on open-source principles to provide cost-effective alternatives to Nvidia’s proprietary solutions. By leveraging open standards like RISC-V, Tenstorrent promotes collaboration and gives developers more control over their AI systems. This strategy is particularly appealing in industries like automotive and robotics, where transparency and flexibility are essential.
Relocating its headquarters to Santa Clara, California, Tenstorrent has not severed its Canadian roots. It employs 140 staff in Toronto and plans further expansion in Canada, supported by key Canadian investors such as Export Development Canada. This dual geographic presence strengthens its position as a global player.
With nearly $1 billion raised to date, Tenstorrent is poised to challenge Nvidia’s dominance in the AI chip market. Its open-source approach and focus on affordability could democratize access to AI computing resources, offering promising alternatives for developers worldwide. Looking ahead, the company’s trajectory suggests potential for an IPO within the next two years, contingent on continued growth and market conditions. This investment marks a pivotal moment for the semiconductor industry, signaling a shift toward more diverse and competitive AI hardware solutions.
Feature image courtesy Tenstorrent.
