TensorWave, a data center provider that focuses primarily on AMD technology, has secured $100 million in its latest funding round as part of its ongoing efforts to expand its AMD-based AI computing infrastructure.
This investment round was spearheaded by AMD Ventures and investment firm Magnetar. Other participants included Maverick Silicon, Nexus Venture Partners, and Prosperity7. With this latest boost, TensorWave’s total capital raised now stands at $146.7 million.
The fundraising comes amid a challenging environment for the data center sector. Costs for essential data center components, including chips and server racks, have been rising due to tariff-related prices—a trend expected to increase overall build costs between 5% and 15%. Moreover, investors have expressed caution about investing in additional data center capacity, particularly in the context of the proliferation of low-cost AI services. Concerns about potential data center overcapacity recently delayed even OpenAI’s ambitious Stargate data center initiative, which carries a reported budget of around $500 billion.
Despite this industry backdrop, TensorWave, headquartered in Las Vegas, Nevada, reports robust business momentum, projecting annual run-rate revenue of over $100 million by year-end—signifying a substantial 20-fold increase from the previous year. CEO Darrick Horton says that this continued growth is evidence of the firm’s competitive positioning and the success of its differentiated strategy.
While Nvidia continues to dominate the AI training hardware market, TensorWave calculatedly cast its lot with AMD, foreseeing a competitive advantage through more cost-efficient cloud solutions. Its infrastructure includes a recently-deployed dedicated GPU training cluster featuring over 8,000 AMD Instinct MI325X GPUs, designed specifically to deliver specialized AI model training at affordable prices.
Horton indicated the fresh funding would allow TensorWave to significantly expand this GPU cluster, bolster the firm’s operational capabilities, and increase headcount from its current 40 to over 100 employees by the end of this year.
“This new round of financing empowers TensorWave to continue its mission of democratizing access to advanced AI computing resources,” Horton said. “The installation of our 8,192-strong AMD Instinct MI325X GPU cluster represents merely the first step as we strive to become the leading name in AMD-powered AI infrastructure.”
TensorWave is part of a growing cohort of innovative ventures and established cloud providers placing bets on AMD hardware to reduce costs and increase accessibility of AI-powered computing. Startups like Lamini and Nscale, as well as established tech providers Azure and Oracle, are also increasingly integrating AMD’s specialized AI chips into their data center strategies.
TensorWave was founded in 2023 by Horton, along with entrepreneurs Jeff Tatarchuk and Piotr Tomasik. Horton and Tatarchuk previously founded cloud services provider VMAccel, while Tatarchuk’s entrepreneurial experience also includes exiting another venture, Lets Rolo, to LifeKey, a digital identity business. Horton previously co-founded VaultMiner Technologies, VMAccel’s parent company, specializing in cryptocurrency mining. Tomasik’s prior ventures include co-founding the influencer marketing platform Influential and collaborating as a co-founder at Lets Rolo.
