LAS VEGAS, May 14, 2025 — TensorWave, a data center provider specializing in AMD hardware, has secured $100 million in a funding round led by Magnetar and AMD Ventures, bringing its total capital raised to $146.7 million. Other participants in the round include Maverick Silicon, Nexus Venture Partners, and Prosperity7.

The data center industry is facing a challenging environment, with tariff-related price hikes on key components like server racks and chips expected to increase build costs by 5% to 15%, according to TD Cowen. At the same time, investors are cautious about the growing risk of overcapacity, particularly as the demand for cheap AI services continues to rise. OpenAI’s $500-billion Stargate data center project is reportedly delayed due to concerns about excess capacity.

Despite these market pressures, TensorWave’s CEO Darrick Horton remains optimistic. The company is on track to finish the year with over $100 million in run-rate revenue, representing a 20-fold increase from the previous year. "This growth is a testament to our strategic focus on providing cloud services at lower prices through AMD’s powerful hardware," Horton said.

TensorWave’s commitment to AMD technology is a key differentiator. While Nvidia dominates data centers used for training and running AI models, TensorWave has been an early adopter of AMD, deploying a dedicated cluster of 8,000 AMD Instinct MI325X GPUs. The new funding will be used to expand this cluster, as well as to scale the company’s headcount and operations.

Currently employing around 40 people, TensorWave expects its team to grow to over 100 by the end of the year. Horton added, “Our 8,192 Instinct MI325X GPU cluster marks just the beginning as we establish ourselves as the emerging AMD-powered leader in the rapidly expanding AI infrastructure market.”

Founded in 2023 by Darrick Horton, Jeff Tatarchuk and Piotr Tomasik, the company is focused on the growing overlap between AI and cloud services. Jeff previously launched the cloud provider VMAccel, while Piotr co-founded the influencer marketing platform Influential.

The latest funding round underscores continued confidence in TensorWave’s approach, with other data center providers such as Lamini, Nscale, Azure, and Oracle also betting on AMD’s AI chips.

As demand for AI-driven infrastructure continues to soar, TensorWave’s bet on AMD could reshape the competitive landscape of the data center market. With its focus on cost-effective solutions and rapid expansion plans, the company is well-positioned to capture a growing share of the AI compute market. As its cluster grows and new partnerships form, TensorWave could become a significant player in the next phase of AI infrastructure development.