TensorWave, a provider of data center infrastructure that relies chiefly on AMD technology, has closed a significant funding round, securing 100 million dollars to power its continued expansion. The latest investment was headed by Magnetar and AMD Ventures and successfully raised the company’s total funding tally to nearly 147 million, based on recent data.
Additional backing came from Maverick Silicon, Nexus Venture Partners, and Prosperity7, even as the broader sector faces pricing volatility. Costs for data center construction are on the rise, impacted by tariffs on essential components like server racks and processors, with experts forecasting a potential increase between five and fifteen percent.
At a time when investors express caution about excess data center capacity, issues with overexpansion have already slowed high-profile projects like the OpenAI Stargate initiative. Nevertheless, TensorWave, AMD Instinct GPUs, based in Las Vegas, reports robust demand, stating business momentum has not waned.
According to CEO Darrick Horton, the company anticipates exceeding 100 million dollars in annual run-rate revenue by year-end, a dramatic growth spurt compared to twelve months earlier. He credited this upward trajectory, in part, to TensorWave’s early commitment to AMD hardware, which aims to deliver cloud-based compute resources for artificial intelligence at a competitive cost.
Expanding AMD-Powered AI Infrastructure
Recently, TensorWave rolled out a dedicated machine learning cluster composed of more than eight thousand AMD Instinct MI325X graphics units. The infusion of capital will support scaling their compute infrastructure, onboarding new talent, and enhancing operational capacity, reinforcing the company’s foothold in the rapidly rising artificial intelligence sector.
Notably, AMD is drawing attention from both entrenched cloud players such as Azure and Oracle as well as from upstart providers like Lamini and Nscale. This broad interest is tilting the competitive field in cloud infrastructure and shifting preferences away from Nvidia’s longstanding dominance.
The current TensorWave workforce numbers around forty, but expansion plans will more than double this figure before yearend. Horton emphasized that this funding milestone furthers the company’s commitment to making advanced artificial intelligence processing accessible on a wider scale.
TensorWave, AMD Instinct GPUs was created in 2023 by Horton, Jeff Tatarchuk, and Piotr Tomasik, each bringing prior entrepreneurial experience to the leadership table. With its recent achievements and growing cluster capacity, the company positions itself as a major new force in AMD powered AI hosting.
