TensorWave raises $100M to grow its AMD-powered cloud infrastructure

Tech Crunch - May 14th, 2025

TensorWave, a Las Vegas-based data center provider, has successfully raised $100 million in a funding round led by Magnetar and AMD Ventures, bringing its total funding to $146.7 million. This investment will aid TensorWave in expanding its data center infrastructure, which is predominantly built using AMD hardware. Notably, the company plans to grow its dedicated training cluster, currently hosting around 8,000 AMD Instinct MI325X GPUs, and increase its team size from 40 to over 100 by year-end. Despite industry concerns about tariff-related cost hikes and potential overcapacity, TensorWave reports robust growth, with projected run-rate revenue exceeding $100 million by the end of the year, marking a 20-fold increase from the previous year.

The context of TensorWave's expansion is set against the backdrop of a challenging landscape for data center projects, with rising costs and investor caution due to market saturation and the proliferation of affordable AI services. However, TensorWave's early adoption of AMD hardware positions it uniquely in the AI infrastructure market, offering competitive pricing and democratizing access to advanced AI computing. Co-founded by Darrick Horton, Jeff Tatarchuk, and Piotr Tomasik, TensorWave is emerging as a significant player in the industry, alongside other providers like Lamini, Nscale, Azure, and Oracle, who are also investing in AMD's AI chips.

Data Centers Ai Infrastructure Funding Round Tensor Wave Amd Hardware Darrick Horton Magnetar Amd Ventures Amd Instinct Mi325 X Gp Us

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RATING

6.8

Fair Story

Consider it well-founded

The article provides a comprehensive overview of TensorWave's recent funding and strategic initiatives, highlighting its focus on AMD hardware and expansion plans. It is well-timed and relevant to current industry trends, appealing primarily to stakeholders in technology and investment sectors. The use of credible sources like TechCrunch and BusinessWire lends authority to the narrative, though the heavy reliance on company statements without independent verification slightly undermines its accuracy.

While the article is clear and engaging, offering a positive perspective on TensorWave's business prospects, it lacks balance and critical analysis of potential challenges. This limits its impact and public interest appeal, as it does not explore broader implications or risks associated with the company's strategy. Enhancing transparency and incorporating diverse viewpoints could improve the article's overall quality and engagement potential.

In summary, the article effectively communicates key developments in TensorWave's business, but could benefit from a more balanced and in-depth exploration of the industry's challenges and opportunities.

Accuracy

The article provides a largely accurate account of TensorWave's recent activities, including its $100 million funding round led by Magnetar and AMD Ventures. This claim is substantiated by multiple reputable sources, such as TechCrunch and BusinessWire. However, some financial figures, like the total capital raised to date and the projected run-rate revenue, are company statements and not independently verified, requiring further confirmation for precision.

The report accurately describes TensorWave's deployment of AMD hardware, specifically the 8,000 AMD Instinct MI325X GPUs, which is confirmed by various sources. Yet, certain claims about market conditions, such as tariff-related price hikes and overcapacity concerns delaying OpenAI's projects, are not independently verified and depend on external reports or analyses that are not cited in the article.

Overall, while the article presents a generally truthful and precise narrative, it includes several areas that need verification, particularly those involving financial projections and market analyses that are not backed by external data.

Balance

The article primarily focuses on TensorWave's achievements and future plans, presenting a positive outlook on the company's growth and market strategy. This perspective is reinforced by quotes from TensorWave's CEO, which highlight the company's optimism and strategic decisions.

However, the article lacks opposing viewpoints or critical analysis of the challenges faced by the company or the broader industry. For instance, while it mentions tariff-related price hikes and overcapacity concerns, these are not explored in depth or balanced with perspectives from industry analysts or competitors.

The piece could benefit from a more balanced approach by including insights from market experts or competitors, which would provide a more comprehensive view of the challenges and opportunities within the data center industry.

Clarity

The article is well-structured and uses clear, concise language to convey complex information about TensorWave's funding and business strategy. It logically progresses from the company's recent achievements to its future plans, providing readers with a coherent narrative.

The use of direct quotes from the CEO adds clarity and provides a personal perspective on the company's goals. However, the article could benefit from clearer explanations of technical terms, such as 'run-rate revenue' or the specifics of the AMD hardware, to ensure accessibility for readers unfamiliar with industry jargon.

Overall, the article is easy to read and understand, with a logical flow that effectively communicates the key points of TensorWave's business developments.

Source quality

The article draws on credible sources like TechCrunch, BusinessWire, and Finsmes, which are well-regarded for their coverage of business and technology news. These sources lend authority to the factual claims about TensorWave's funding and hardware deployments.

However, the article heavily relies on statements from TensorWave's CEO and company data, which could introduce bias if not independently verified. While the use of corporate statements is common in business reporting, additional external validation from industry analysts or financial experts would enhance the article's reliability.

Overall, the source quality is strong, but the reliance on company-provided information without sufficient independent corroboration slightly undermines the article's impartiality.

Transparency

The article provides clear information about TensorWave's funding and strategic plans, citing specific figures and goals. However, it does not adequately disclose the methodology behind certain claims, such as market conditions or the company's projected revenue growth.

There is a lack of transparency regarding the sources of some market analyses, such as the tariff-related price hikes and investor concerns about overcapacity. These claims are not backed by specific reports or data, which limits the reader's ability to assess their validity.

Improved transparency, particularly in disclosing the basis for market-related claims and potential conflicts of interest, would enhance the article's credibility and allow readers to better understand the context of the information presented.