TensorWave, a building facility for a data center provider with primarily AMD hardware, has raised $100 million to try to build more data center infrastructure.
According to CrunchBase, the funding round was led by Magnetar and AMD Ventures, increasing the company’s total capital to $146.7 million. Nexus Venture Partners and Prosperity 7’s Maverick Silicon also participated in the round.
It’s a volatile time for data center projects. According to an analysis by TD Cowen, increased tariff-related prices for components such as server racks and chips could contribute to an increase in overall data center build costs by 5% to 15%.
Investors are also wary of projects that are too many such capabilities, especially as the number of inexpensive AI services continues to grow. The excess capacity is reportedly one of the factors that has slowed Openai’s ambitious $500 billion Stargate Data Center project.
Las Vegas, based in Tenso Wave, Nevada, claims it has not seen a slowdown in business. The company is expected to close the year with run-rate revenues of over $100 million and run-rate revenues of over $100 million (pictured above, center).
Nvidia is the preferred hardware vendor for data centers used to train and run AI models. However, Tensorwave had an early adoption of AMD and was aiming to provide cloud services at a lower price.
TensorWave recently deployed a “dedicated training” cluster of instinctive MI325X GPUs of around 8,000 AMD. New capital will allow the company to grow its clusters, expand its staff and support “operational growth,” Horton said.
Tensorwave currently has a team of around 40 people, and is expected to reach over 100 by the end of the year.
“This $100 million funding drives Tensorwave’s mission to democratize access to cutting-edge AI calculations,” added Horton. “Our 8,192 instinctive MI325X GPU cluster is just the beginning to establish ourselves as a new AMD-equipped leader in the rapidly expanding AI infrastructure market.”
Other data center providers that bet on AMD’s AI chips range from startups like Lamini and NSCALE to larger, more established cloud providers like Azure and Oracle.
Horton was co-founded in 2023 with Jeff Tatarchuk (top photo, top left) and Piotr Tomasik (top photo, top photo, right). Tatarchuk previously launched Horton and cloud vendor VMACCEL, selling another startup. Horton co-founded Crypto Mining Company VaultMiner Technologies, the corporate parent of VMACCEL. For Tomasik, he co-hosted an influencer marketer site and is the second co-founder of Lets Rolo.