TensorWave, a data center provider that primarily uses AMD hardware to build its facilities, has raised $100 million to further expand its data center infrastructure. The funding round was led by Magnetar and AMD Ventures, bringing the total capital raised by the company to $146.7 million, as reported by Crunchbase. Maverick Silicon, Nexus Venture Partners, and Prosperity7 also participated in the round.
In a challenging time for data center projects, tariff-related price increases on components like server racks and chips could lead to a 5% to 15% rise in overall data center construction costs, according to an analysis by TD Cowen. Investors are cautious about projects that may accumulate excess capacity, especially with the growing number of affordable AI services. Overcapacity has reportedly delayed OpenAI’s ambitious $500-billion Stargate data center project.
While some data center projects face uncertainties, Las Vegas-based TensorWave reports a strong business performance. The company is projected to end the year with a run-rate revenue of over $100 million, a 20x increase from the previous year, according to CEO Darrick Horton. Despite Nvidia being the preferred hardware vendor for AI model training and execution, TensorWave opted for AMD early on to offer cloud services at competitive prices.
Recently, TensorWave deployed a “dedicated training” cluster containing approximately 8,000 AMD Instinct MI325X GPUs. The fresh funding will allow the company to expand this cluster, increase its workforce, and support operational growth, as stated by Horton.
TensorWave currently has a team of around 40 employees, with plans to surpass 100 by the end of the year. Co-founder Jeff Tatarchuk, along with Horton and Piotr Tomasik, established the company in 2023. Tatarchuk previously launched cloud vendor VMAccel, sold a startup called Lets Rolo to digital identity firm Lifekey, and co-founded crypto mining company VaultMiner Technologies. Tomasik, on the other hand, co-launched Influential, an influencer marketing platform, and was involved in Lets Rolo as a co-founder.
