Tenstorrent, a startup specializing in AI hardware and software, has closed its Series D funding round, raising $693 million and achieving a valuation of $2.6 billion. The round attracted high-profile investors including Samsung Securities, Bezos Expeditions, LG Electronics, and Hyundai Motor Group.
Tenstorrent leverages RISC-V, an open-source instruction set architecture, to provide interoperability with other tech providers and reduce reliance on proprietary systems. Unlike Nvidia’s closed approach, Tenstorrent’s open-source model enables customers to integrate their chips into existing systems more affordably and efficiently.
Competitive Edge:
- Open-Source Platform: Builds on RISC-V to attract engineers and foster wider adoption.
- Cost Advantage: Aims to offer AI processing solutions at a lower price point than Nvidia.
- Flexibility: Allows clients to license products and design their own silicon.
Market Context:
While Nvidia dominates the AI chip market with its proprietary technology, Tenstorrent seeks to capture a share of this lucrative sector by emphasizing open standards and interoperability. The company has already secured $150 million in commercial deals, signaling strong market traction.
Tenstorrent’s funding marks a significant milestone as it positions itself as a viable competitor to Nvidia in the rapidly expanding AI chip industry. With backing from tech giants and high-profile investors, the company is poised for growth in the AI and semiconductor sectors.
