TensorWave, a Las Vegas-based AI GPU cloud computing startup, has made history by securing $100 million in Series A funding, the largest ever for a Nevada-based startup. The funding round was led by Magnetar and AMD Ventures, with contributions from existing investors Maverick Silicon and Nexus Venture Partners, and new investor Prosperity7. This influx of capital will enable TensorWave to expand its deployment of GPUs, furthering its mission to democratize AI access.
Founded in December 2023 by Darrick Horton, Jeff Tatarchuk, and Piotr Tomasik, TensorWave initially raised $43 million in seed funding, marking a record for startup funding in Nevada at the time. The company has quickly grown, now operating with 43 employees and generating over $100 million in annual revenue. TensorWave is distinctive for its use of AMD Instinct™ MI325X GPUs, opting for AMD over the more commonly used Nvidia GPUs due to advantages in memory and strategic growth potential.
TensorWave’s business model focuses on providing access to powerful GPUs for AI companies and startups, allowing them to train and utilize AI models more efficiently. By leveraging AMD’s technology, TensorWave aims to challenge Nvidia’s dominance in the GPU market, offering a more accessible alternative for companies in need of these critical resources.
The company currently operates data centers in Arizona, Pennsylvania, and Florida, with plans to significantly expand its GPU deployment. Recently, TensorWave received $210,000 in abatements from the Nevada Governor’s Office of Economic Development to support job creation, aiming to add 60 new positions at an average wage of $58 per hour. Looking ahead, the company is preparing for another round of funding to increase its GPU capacity by an additional 20,000 units. This growth trajectory positions TensorWave as a key player in the tech industry, contributing to the burgeoning startup ecosystem in Las Vegas.