News Summary
TensorWave, an AI GPU cloud startup based in Las Vegas, has raised $100 million in Series A funding, making it the largest of its kind in Nevada’s history. Spearheaded by Magnetar and AMD Ventures, this funding focuses on advancing the company’s mission to democratize AI. With previous seed funding of $43 million, TensorWave has now amassed a total of $145 million, employing about 43 workers and planning to deploy an additional 20,000 GPUs to cater to smaller enterprises seeking affordable GPU access.
Las Vegas – TensorWave, an artificial intelligence GPU cloud computing startup based in Las Vegas, has successfully raised $100 million in Series A funding, marking a historic milestone as the largest Series A funding secured in Nevada’s history. The funding round was spearheaded by Magnetar and AMD Ventures, with support from Maverick Silicon, Nexus Venture Partners, and new investor Prosperity7. The newly acquired capital is earmarked for the deployment of more Graphics Processing Units (GPUs) to advance the company’s mission of “democratizing AI.”
This latest funding comes on the heels of TensorWave’s previous achievement, where it raised $43 million in seed funding back in October, which was then the largest startup funding in Nevada. With this recent amount included, TensorWave has now accumulated a total of $145 million in funding and reports an annual revenue exceeding $100 million.
Founded in December 2023 by Darrick Horton (CEO), Jeff Tatarchuk (Chief Growth Officer), and Piotr Tomasik (President and COO), TensorWave aims to address a significant shortage in the data center GPU market. Shortly after launching, the startup received around $2.2 million in initial funding from StartupNV, further propelling its growth.
The company currently operates out of a coworking space at Town Square in Las Vegas and employs approximately 43 workers, with most of the staff based in Las Vegas. Notably, TensorWave distinguishes itself by utilizing AMD Instinct™ MI325X GPUs, rather than the more widely used Nvidia GPUs. The company’s leadership believes that AMD possesses a memory advantage and is on the path to aligning with Nvidia’s technology roadmap within the next five years.
TensorWave’s business model targets smaller companies that typically struggle to afford expensive GPUs from Nvidia providers. By offering access on a pay-as-you-go basis, clients can use thousands of GPUs for large-scale processing without the hefty upfront costs. For smaller enterprises, the company has introduced a credit system in exchange for marketing collateral. For larger clients, TensorWave has secured contracts valued at up to $240 million over predetermined periods.
The infrastructure of TensorWave includes three data centers located in Arizona, Pennsylvania, and Florida. Each of the company’s servers requires eight AMD GPUs, with each server carrying a price tag of approximately $250,000. Currently, TensorWave boasts a stock of over 10,000 GPUs, of which more than 8,000 are already in deployment.
In support of its growth initiatives, TensorWave has been approved for $210,000 in abatements from the Nevada Governor’s Office of Economic Development. The company is set to create an additional 60 new jobs with an average hourly wage of $58. The strategic location of Las Vegas has been deemed advantageous for attracting talent, giving the company an edge over regions that offer less favorable climate conditions.
Looking ahead, TensorWave aims to pursue another round of funding to facilitate the deployment of 20,000 additional GPUs. The leadership team, equipped with extensive experience in the technology space, has observed the tech startup environment in Las Vegas as rapidly evolving, signifying promising opportunities for growth in the region.
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Additional Resources
- Las Vegas Review-Journal
- Wikipedia: Cloud Computing
- Reuters
- Google Search: TENSORWAVE AI GPU startup
- GlobeNewswire
- Google Scholar: Cloud Computing Investments
