TensorWave has secured a major financial boost, attracting 100 million dollars in funding to expand its data center operations built primarily with AMD technology. Backed by Magnetar and AMD Ventures, along with support from other key investors, the company’s total raised capital now stands at 146.7 million dollars, according to industry reports.
The investment arrives at a challenging period for those building data center infrastructure, with rising component costs caused by tariffs driving overall construction expenses higher. At the same time, concerns about creating more capacity than needed are widespread, as an abundance of affordable artificial intelligence services shifts market dynamics.
Growth Despite Industry Headwinds
TensorWave, headquartered in Las Vegas, insists that its own growth trajectory remains robust, expecting to reach over 100 million dollars in run-rate revenue by year’s end. The company’s expansion is notable, having scaled its revenue twentyfold over the previous twelve months, as reported by CEO Darrick Horton.
While Nvidia remains the top choice for many AI data centers, TensorWave opted early on to leverage AMD’s hardware to deliver more cost-effective cloud solutions. It recently rolled out a dedicated training system featuring approximately 8,000 AMD Instinct MI325X GPUs, reflecting its commitment to AMD-powered innovation.
The new funds are set to fuel further development, including enlarging the existing GPU cluster, hiring new talent, and driving operational upgrades. Horton emphasized that this capital is essential for advancing the company’s mission to make artificial intelligence compute power more accessible.
Currently employing about 40 team members, TensorWave anticipates its workforce to surpass 100 by the end of the year. Horton highlighted that the 8,192 Instinct MI325X GPU setup is only the first step in establishing the company as a leader in the growing market for AMD-supported AI infrastructure.
Several industry players, from emerging firms like Lamini and Nscale to established giants such as Azure and Oracle, are also investing in AMD’s artificial intelligence chips. TensorWave was founded in 2023 by Darrick Horton, Jeff Tatarchuk, and Piotr Tomasik, all of whom bring experience from previous ventures in cloud computing and marketing platforms.
