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TensorWave
- TensorWave has successfully secured $43 million for its AI cloud service platform.
- This Las Vegas-based startup provides AMD-powered GPUs as a competitive alternative to Nvidia’s offerings.
- Business Insider received an exclusive preview of the 9-slide pitch deck utilized to obtain this funding.
Founded in 2023, TensorWave is a startup focused on delivering a cloud platform tailored for AI applications, utilizing chips from AMD, a competitor of Nvidia. The company has raised $43 million in its latest funding round.
The Las Vegas startup operates data centers equipped with “thousands” of GPUs, which clients can access through the cloud to execute their AI workloads efficiently.
Darrick Horton, co-founder and CEO of TensorWave, emphasized that their infrastructure exclusively employs hardware from semiconductor giant AMD.
The team identified a significant issue within the AI computing sector: Nvidia’s overwhelming “monopoly,” leaving businesses without any viable alternatives. Piotr Tomasik, co-founder and COO, highlighted this concern during discussions with Business Insider.
According to their pitch deck shared exclusively with BI, there is an urgent demand among buyers for alternative solutions in AI computing infrastructure.
TensorWave generates revenue through two primary channels. “We adopted a conventional business model typical for neoclouds where we charge clients by the hour; essentially it’s infrastructure as a service,” explained Tomasik.
“Additionally, we offer reserved time contracts where customers might lease eight GPUs from us for an entire year and pay upfront regardless of whether they utilize them for just 10 hours or continuously throughout the week,” he added during his conversation with BI.
This recent funding was structured as a Simple Agreement for Future Equity (SAFE), meaning investors will not acquire equity until specific conditions are fulfilled.
Nexus VP spearheaded this $43 million investment round—reportedly Nevada’s largest SAFE financing ever—while other contributors included Maverick Capital, Translink Capital, Javelin Venture Partners, StartupNV, and AMD Ventures.
During their fundraising efforts, the team noted an increasing momentum within the GPU cloud sector alongside heightened interest from investors.
With these new funds at hand, TensorWave aims to expand its workforce and enhance its hardware deployment capabilities significantly.
A Glimpse into TensorWave’s Pitch Deck
TensorWave
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