Billion-dollar AI chip startup joins hands with Samsung to challenge Nvidia

Tenstorrent is one of several startups looking to unseat Nvidia, which currently makes chips and sells patents for use in data centers, but is also trying to expand into other markets like cars.

Under the agreement, Tenstorrent will have access to Samsung's advanced 4nm manufacturing process, to produce chiplets (integrated circuits consisting of many smaller chips).

Tenstorrent aims to capture the high-performance computing market currently held by Nvidia. Photo: Reuters

Some of the Canadian company's products are built using RISC-V technology (open source hardware instruction set architecture) and a semiconductor architecture that competes with Arm and x86 used by Intel and AMD.

However, the Samsung-made chip called Quasar is not based on the aforementioned RISC-V technology.

“Tenstorrent's focus is on developing high-performance computing and delivering these solutions to customers around the world,” said Jim Keller, CEO of Tenstorrent.

In August 2023, the startup led by Jim Kelly raised $100 million from Hyundai Motor Group and Samsung Investment Fund. Prior to that, Tenstorrent also raised $234.5 million to raise the company's valuation to $1 billion, becoming a "unicorn" looking to challenge Nvidia.

Keller is a veteran semiconductor expert who has developed chips for Apple, Tesla and Intel. His ambition is to return to the automotive technology sector.

Also in August 2023, South Korean automaker Hyundai said it had established a separate semiconductor development team last year, and plans to use Tenstorrent's technology on "Hyundai, Kia and Genesis vehicles in the future."

Tenstorrent is also developing AI chips for a variety of uses, including a deal announced in May with LG for processors used in smart TVs.

Tenstorrent said it raised $30 million from Hyundai, $20 million from Kia, and the remaining $50 million came from Samsung's Catalyst fund and several other investors such as Fidelity Ventures, Eclipse Ventures, Epiq Capital, and Maverick Capital, etc.

(According to Reuters)

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