TensorWave, a cloud provider that runs its AI data centres on AMD chips rather than Nvidia’s, has raised $350M in a Series B round led by AMD and the hedge fund Magnetar Capital. The deal values the Las Vegas startup at $1.55bn.
That is nearly four times the roughly $400M valuation it carried a year ago. Founded in 2023, TensorWave positions itself as an alternative to Nvidia, whose GPUs dominate AI infrastructure. “We were created to restore competition to the market,” chief executive Darrick Horton said.
The new capital will fund more data-centre capacity and more chips. TensorWave has already deployed a training cluster of around 8,000 AMD Instinct MI325X accelerators, and the round follows a $100M Series A, co-led by the same backers, in May 2025.
AMD is funding its own customer
The notable part is who is paying. AMD is both TensorWave’s chip supplier and now a lead investor, using its balance sheet to build out a buyer for its accelerators and a counterweight to Nvidia. It is the same playbook Nvidia has run from the other side, pouring more than $40bn into AI equity bets this year, including $2bn into Nebius.
