In a bold move that positions it as a top contender in the AI infrastructure race, TensorWave has secured a $100 million funding round to accelerate the growth of its AMD-based cloud data centers. This new capital injection comes at a time when cloud infrastructure projects face rising build costs and cautious investor sentiment due to market saturation fears.
The latest round was led by Magnetar and AMD Ventures, with participation from Maverick Silicon, Nexus Venture Partners, and Prosperity7 Ventures. With this round, TensorWave’s total funding has reached $146.7 million, according to Crunchbase.
Betting on AMD Over Nvidia
While most AI data centers continue to rely heavily on Nvidia hardware, TensorWave took a different route early, placing its bet on AMD’s Instinct MI325X GPUs. CEO Darrick Horton said this decision was driven by a desire to offer high-performance compute power at more accessible pricing—a crucial advantage as demand surges for cost-efficient AI training.
Recently, the Las Vegas–based startup rolled out a dedicated AI training cluster featuring 8,192 AMD Instinct MI325X GPUs. The $100 million capital will now go toward expanding this GPU fleet, hiring talent, and scaling operations to support rising customer demand.
Despite macroeconomic headwinds and potential component tariff hikes that could inflate data center build costs by 5% to 15%, TensorWave reports no slowdown in growth. The company is reportedly on pace to reach a $100 million annual run-rate revenue, up 20x from just a year ago.
From Startup to Rising Star in AI Compute
Founded in 2023 by Darrick Horton, Jeff Tatarchuk, and Piotr Tomasik, TensorWave’s leadership brings deep experience in cloud, crypto, and digital identity infrastructure. Horton and Tatarchuk previously teamed up to build VMAccel, while Tomasik co-founded marketing tech company Influential.
With a current team of around 40 employees, TensorWave expects to more than double its headcount by year’s end. This expansion aligns with its mission to democratize access to high-performance AI computing, especially for startups and enterprises priced out of Nvidia-dominated platforms.
As AMD chips gain traction across the cloud ecosystem—from new startups like Lamini and Nscale to giants like Azure and Oracle—TensorWave is carving out a niche as a cost-effective, AMD-native cloud provider tailored for the AI era.
