TensorWave, known for constructing data centers using AMD components, has secured an additional $100 million in funding to advance its infrastructure goals. This latest investment round, driven by Magnetar and AMD Ventures, increases the company’s total raised capital to $146.7 million.
Other contributors in the funding round included Maverick Silicon, Nexus Venture Partners, and Prosperity7. Amid industry-wide cost concerns caused by tariffs on servers and chips, analysts estimate data center build costs could rise between 5 to 15 percent.
Investor hesitation has grown due to the risk of oversupply, especially as affordable artificial intelligence services proliferate. Overcapacity concerns have even slowed giant projects like OpenAI’s large scale Stargate data center.
TensorWave Pushes Forward Despite Industry Headwinds
Despite these challenges, TensorWave, headquartered in Las Vegas, reports sustained business momentum. The company is projected to finish the year earning more than $100 million in run-rate revenue, surging twentyfold from last year according to CEO Darrick Horton.
While Nvidia remains the dominant choice for data centers powering AI training, TensorWave pursued AMD hardware from the start to provide lower cost cloud solutions. The company recently launched a powerful training cluster featuring about 8,000 AMD Instinct MI325X GPUs.
With its recent capital influx, TensorWave plans to expand this cluster, grow its workforce, and strengthen operations. Current staffing sits at 40, but leadership expects to surpass 100 employees before the year’s end.
According to Horton, the company’s mission is to make advanced AI computing accessible to a broader market, citing their Instinct MI325X deployment as just the first step. TensorWave joins a list of data center innovators, from new companies like Lamini and Nscale to established cloud providers such as Azure and Oracle, that are integrating AMD’s AI chips.
Founded in 2023 by Horton, Jeff Tatarchuk, and Piotr Tomasik, the team brings experience from ventures in cloud services, crypto mining, and digital marketing. Their combined expertise underpins TensorWave’s ambitions to become a leader in next-generation AI infrastructure.
