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TensorWave Secures $100M to Expand AMD-Powered AI Cloud Infrastructure

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TensorWave, a Nevada-based data center company, has bumpily raised $100 million to boost its AMD-based AI infrastructure. This round was led by Magnetar and AMD Ventures, making their capital tally hit $146.7 million, as reported by Crunchbase.

The company, which specializes in building data centers with AMD hardware, aims to grow its core operations, including an impressive cluster of around 8,000 AMD Instinct MI325X GPUs. With this new funding, they plan to expand that hardware setup, increase staff, and support ongoing growth efforts.

Despite rising costs for data center components due to tariffs—projected to hike expenses by 5-15%—and concerns about overcapacity in the AI market, TensorWave reports no slowdown. They anticipate ending the year with revenue surpassing $100 million, a hefty 20-fold jump from last year, according to CEO Darrick Horton.

Unlike some competitors favoring Nvidia, TensorWave is betting on AMD, aiming to provide cheaper cloud services. Horton revealed that the firm recently deployed a dedicated training cluster of approximately 8,000 AMD GPUs. The new funds will help expand this cluster, hire more talent, and bolster operational scale.

Horton, who co-founded TensorWave in 2023 alongside Jeff Tatarchuk and Piotr Tomasik, emphasized their mission: to democratize access to cutting-edge AI compute. The team, now about 40 strong, targets over 100 employees by year-end. Their progress signifies an emerging leader in AMD-powered AI infrastructure, challenging existing giants in the field.

Many other data center providers, from startups like Lamini and Nscale to giants like Azure and Oracle, are also exploring AMD chips. This reflects a broader industry shift toward cost-efficient, high-performance AI hardware.

Horton’s past ventures include cloud startup VMAccel and the crypto mining firm VaultMiner. His co-founders bring diverse backgrounds—Tatarchuk with cloud and startup experience, Tomasik with influencer marketing and tech startups—cementing a well-rounded team.

Looking ahead, TensorWave is set to grow rapidly, leveraging their substantial funding to accelerate AI infrastructure accessibility and innovation. It’s a thrilling time for the AI and data center universe!

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