Developer of AI chips Tenstorrent has completed a $100 million strategic funding up-round that was jointly sponsored by Hyundai Motor Group and the Samsung Catalyst Fund. Other investors like Fidelity Ventures, Eclipse Ventures, Maverick Capital, and others are taking part in the investment round, which was disclosed on August 3, 2023.
The Toronto, Canada-based company Tenstorrent, which has offices throughout the world, specialises in selling AI processors and licencing RISC-V and AI IP to clients who want to own and personalise their silicon. Jim Keller, the CEO of the business, has created AI chips in the past for well-known tech giants like Apple, Intel, and Tesla.
According to the financial information, $50 million was provided by the Catalyst Fund by Samsung and other participating investors, with $30 million coming from Hyundai, $20 million from Kia, and no other investors were involved. The money will be used to “accelerate the company’s product development, the design and development of AI chiplets,” and to make more strides on its roadmap for machine learning software.
In a statement about the investment, Heung-soo Kim, Executive Vice President and Head of the Global Strategy Office at Hyundai Motor Group, stated that the Group hopes to “develop optimised but differentiated semiconductor technology that will aid future mobilities and strengthen internal capabilities in AI technology development.”
The investment comes as manufacturers face off against Nvidia, the industry leader in AI chip development right now. Increased market competition has resulted from the growing need for powerful semiconductor chips to create AI systems, with companies like AMD also revealing plans for new AI chips.
The partnership between Tenstorrent and industry heavyweights like Samsung and Hyundai demonstrates the rising demand for AI technology and the potential for innovation in this area. The investment supports Hyundai Motor Group’s aggressive technology adoption strategy, which includes the company’s acquisition of Boston Dynamics and partnership with Aptiv.
The executive vice president of Samsung Catalyst Fund, Marco Chisari, expressed enthusiasm about the chance to collaborate with Tenstorrent and said the company’s “industry-leading technology, executive leadership, and aggressive roadmap motivated us to co-lead this funding round.”
The strategic investment in Tenstorrent is representative of a larger trend in the electronics and automotive industries, where artificial intelligence (AI) and semiconductor technologies are playing a crucial role in determining the future of computers and mobility. Tenstorrent, Hyundai, and Samsung’s collaboration may open the path for new advancements in AI technology, establishing them as major leaders in the quickly developing field of artificial intelligence and machine learning.