TensorWave raises $100M to grow its AMD-powered cloud infrastructure

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TensorWave Raises $100 Million to Expand AMD-Powered Data Center Infrastructure

In a bold move to enhance its data center capabilities, TensorWave, a Las Vegas-based provider specializing in AMD-powered facilities, has successfully secured $100 million in funding. This significant influx of capital aims to bolster the company’s growing infrastructure as it navigates an increasingly competitive landscape. Led by Magnetar and AMD Ventures, this funding round marks a pivotal moment for TensorWave, bringing its total capital raised to $146.7 million, according to Crunchbase. Additional investors, including Maverick Silicon, Nexus Venture Partners, and Prosperity7, also contributed to the round. While data center projects face challenges due to rising costs, such as tariff-driven increases in server rack and chip prices, TensorWave remains optimistic about its trajectory. CEO Darrick Horton, pictured above, shared that the company is on pace to achieve over $100 million in annualized revenue by year-end—a staggering 20x increase from the previous year. Despite concerns about overcapacity and slowing demand, Horton insists that TensorWave hasn’t experienced a downturn in business.

Taking a Different Path with AMD Hardware

While Nvidia dominates the AI hardware space, TensorWave has chosen to differentiate itself by focusing on AMD’s robust offerings. Horton emphasized the company’s commitment to providing cost-effective cloud services, stating, “We’re here to democratize access to cutting-edge AI compute.” This strategic approach is already paying dividends. TensorWave recently unveiled an impressive “dedicated training” cluster featuring approximately 8,000 AMD Instinct MI325X GPUs. The fresh funding will allow the company to scale this cluster further, expand its workforce, and fuel operational growth.

Growing Rapidly, Yet Strategically

Currently employing around 40 individuals, TensorWave anticipates reaching a headcount of over 100 by year-end. Horton expressed excitement about the company’s progress: “Our 8,192 Instinct MI325X GPU cluster is just the beginning. We’re positioning ourselves as the leading AMD-powered player in the burgeoning AI infrastructure market.” Joining TensorWave’s ranks are co-founders Jeff Tatarchuk and Piotr Tomasik. Before founding TensorWave, Tatarchuk established cloud vendor VMAccel alongside Horton and later sold another startup, Lets Rolo, to Lifekey. Horton also co-founded crypto mining company VaultMiner Technologies, VMAccel’s parent. Meanwhile, Tomasik co-founded Influential and played a key role in launching Lets Rolo.

Amping Up the Competition

TensorWave isn’t alone in betting on AMD’s AI chips. Competitors span startups like Lamini and Nscale to major players such as Azure and Oracle. However, TensorWave’s unique blend of vision, strategy, and execution positions it as a formidable contender in the rapidly evolving AI infrastructure sector.

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