Samsung Invests $700 Million in AI Chipmaker Tenstorrent.
In a significant move within the tech industry, Samsung has invested $700 million in Tenstorrent, an emerging AI chipmaker aiming to rival NVIDIA. This funding round, which also saw contributions from Jeff Bezos and other investors, values Tenstorrent at approximately $2.6 billion. The investment is part of Samsung’s strategy to boost competition in the AI hardware market and provide more affordable and energy-efficient alternatives to NVIDIA’s offerings.
Tenstorrent, founded in 2016 by Ljubisa Bajic, Ivan Hamer, and Milos Trajkovic, focuses on developing powerful AI hardware and software. The company’s CEO, Jim Keller, who has previously worked with Apple, Tesla, and AMD, believes that their open-source approach will give them a competitive edge over NVIDIA’s proprietary systems. Keller stated, “Open source helps you build a bigger platform. It attracts engineers. And yes, it’s a little bit of a passion project.”
The $700 million investment will be used to expand Tenstorrent’s engineering team, enhance its supply chain, and develop AI training servers to showcase its technology. The company plans to release new AI chips every two years and produce these chips through Samsung Electronics and TSMC factories. Tenstorrent’s focus on open-source technology and the use of the RISC-V instruction set architecture, which is royalty-free and open-source, aims to provide increased interoperability with other tech providers.
Samsung’s investment in Tenstorrent is a strategic move to support the development of more cost-effective and power-efficient AI chips. The company believes that fostering competition in the AI chip market will lead to more innovative and accessible solutions for AI developers and consumers alike. With the backing of high-profile investors like Jeff Bezos and Samsung, Tenstorrent is well-positioned to challenge NVIDIA’s dominance in the AI hardware industry.
Samsung Invests $700 Million in AI Chipmaker Tenstorrent.
The investment also highlights the growing importance of AI technology in various industries and the need for advanced hardware to support AI applications. As AI continues to evolve, the demand for powerful and efficient AI chips will only increase, making investments like Samsung’s crucial for the future of the industry.
Tenstorrent’s ambitious plans include expanding its engineering team to drive innovation and accelerate the development of cutting-edge AI hardware. The company aims to create AI training servers that demonstrate the capabilities of their technology, providing a competitive edge in the rapidly growing AI market. By leveraging their open-source approach and the support of major investors, Tenstorrent is poised to make significant strides in the AI chip industry.
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Samsung’s investment is not only a financial boost for Tenstorrent but also a strategic alignment that could lead to collaborative innovations. With Samsung’s expertise in electronics and manufacturing, Tenstorrent can leverage this partnership to optimize its supply chain and scale production efficiently. The collaboration between these two tech giants signals a transformative shift in the AI hardware landscape, with the potential to disrupt NVIDIA’s market stronghold and introduce more diverse and competitive AI solutions.
