AI Chip Startup Tenstorrent Raises $700 Million to Take on Nvidia
A New Challenger Emerges
In a bold move, Samsung has joined forces with Jeff Bezos to invest $700 million in Tenstorrent, an AI chip startup with ambitious plans to disrupt Nvidia’s dominance in the AI market. This significant funding round values Tenstorrent at approximately $2.6 billion.
The Quest for AI Supremacy
Tenstorrent’s mission is to create a chip that can break Nvidia’s stranglehold on the AI business. Led by semiconductor pioneer Jim Keller, the company aims to develop a more affordable and efficient path to AI development using open-source technology.
Breaking Free from Nvidia’s Grip
Keller believes that Nvidia’s reliance on high-bandwidth memory (HBM) is a major limitation. “You can’t beat Nvidia if you use HBM, because Nvidia buys the most HBM and has a cost advantage,” he explained. Tenstorrent is instead focusing on developing solutions that avoid complex and pricey components like HBM.
The Rise of Open-Source AI
Tenstorrent is part of a growing movement towards open-source AI development. By using shared industry standards and opening their designs for others to use, companies like Tenstorrent and Advanced Micro Devices Inc. are promoting greater interoperability with other technology providers.
A New Era of Collaboration
Keller, known for his work at Apple, Tesla, and AMD, is a strong advocate for open-source technology. “Open source helps you build a bigger platform. It attracts engineers. And yes, it’s a little bit of a passion project,” he said.
Proving Themselves
While Tenstorrent still has much to prove, the company has already signed contracts with customers totaling nearly $150 million. With plans to release a new AI processor every two years, Tenstorrent is poised to become a major player in the AI market.
A Global Effort
Tenstorrent’s funding round included investments from a range of global companies, including LG Electronics Inc., Fidelity, Export Development Canada, and Hyundai Motor Group. The company’s partnerships with Korean companies like LG and Japanese partner Rapidus Corp. demonstrate its commitment to collaboration and innovation.
The Future of AI
As the AI market continues to grow, companies like Tenstorrent are pushing the boundaries of what is possible. With its focus on open-source technology and affordable solutions, Tenstorrent is well-positioned to challenge Nvidia’s dominance and shape the future of AI development.
Leave a Reply