Amazon has unveiled powerful AI chip clusters to enhance Anthropic’s models, aiming to challenge Nvidia and OpenAI’s dominance, while continuing to deepen its partnership with Anthropic through a $8 billion investment and providing new computing power to customers.
Amazon has unveiled powerful AI chip clusters to enhance Anthropic’s models, aiming to challenge Nvidia and OpenAI’s dominance, while continuing to deepen its partnership with Anthropic through a $8 billion investment and providing new computing power to customers. Amazon founder Jeff Bezos, in collaboration with Samsung, has joined a massive $700 million funding round for AI chip startup Tenstorrent, valuing the ambitious company at $2.6 billion. Tenstorrent aims to disrupt Nvidia’s dominance in AI by developing cost-effective and power-efficient chips, leveraging open-source technology instead of expensive proprietary components like Nvidia’s high-bandwidth memory (HBM). “You can’t beat Nvidia if you use HBM. Open-source allows us to scale and attract engineers globally,” said Jim Keller, Tenstorrent’s founder and a veteran semiconductor designer with a track record at Apple, Tesla, and AMD. Funding and Strategic Focus The funding, led by South Korea’s AFW Partners and Samsung Securities, also saw participation from Bezos Expeditions, LG Electronics, Fidelity, and others. With $150 million in contracts already signed, Tenstorrent is directing its capital towards: Expanding its engineering team. Strengthening its global supply chain. Building AI training servers to showcase its technology. Tenstorrent is betting on RISC-V, an open-standard logic processor, to rival Arm Holdings and create a platform that fosters interoperability with other technologies. Market Competition While Nvidia leads the AI chip market with its proprietary ecosystem, Tenstorrent and rivals like AMD are banking on openness and collaboration. Unlike Nvidia’s yearly chip updates, Tenstorrent plans to release new processors biennially, aiming for cost efficiency and scalability. Partnerships and Production Plans Tenstorrent’s chips are currently manufactured by GlobalFoundries, with future designs set for Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics. The company is preparing for 2-nanometer chip fabrication, aligning with TSMC, Samsung, and Japan’s Rapidus, which targets 2-nm production by 2027. Investor Spotlight The funding round attracted major investors, including Export Development Canada, Hyundai Motor Group, and Baillie Gifford. AFW Partners decided to invest after hearing positive feedback from Tenstorrent’s Korean collaborators, including LG Electronics. As Tenstorrent grows, it faces an uphill battle against Nvidia’s multi-billion-dollar quarterly revenue but remains committed to delivering innovative, affordable AI solutions. Stay updated on the latest tech innovations and AI breakthroughs—Subscribe to NewsTodayDigest.com now!Jeff Bezos and Samsung Back Tenstorrent’s Bold Move to Challenge Nvidia in AI Chips
