Jeff Bezos and Tesla’s Autopilot Architect Join Forces in a $700M Challenge to Nvidia

Jeff Bezos must be bored. Apparently, driving every retail chain into bankruptcy (via Amazon), pocketing $1 billion a day (also Amazon), and trying to out-meme Elon Musk in space isn’t keeping his calendar full. Now, the bald guy with the signature evil laugh has his sights set on Jensen Huang and upending Nvidia as the biggest AI chipmaker in the world by investing $700 million in Tenstorrent.

Oh, and remember when Samsung said, “Nah, we’re not interested” to Tenstorrent’s $300 million pitch back in June? They must have been biding their time to roll in with Bezos to pack the biggest punch possible. 

Now for the numbers. This latest funding round, orchestrated by South Korea’s AFW Partners and Samsung Securities, smacked a $2.6 billion valuation on Tenstorrent. That’s cool and all, but so far, the company’s only bagged $150 million in contracts. Impressive? Sure, if you don’t compare it to Nvidia’s datacenter division, which is making tens of billions per quarter. In this analogy, Nvidia is the Amazon rainforest, and Tenstorrent is your overwatered succulent. But hey, ambition’s gotta start somewhere, right?

(Source: TechCrunch)

The brains behind this new operation, Jim Keller, isn’t exactly new to the semiconductor game. This guy’s résumé is basically a Silicon Valley greatest hits album, featuring Apple’s A-series chips, Tesla’s autopilot systems, and AMD’s Ryzen CPUs. But his biggest sell now? Chips that are faster, cheaper, and less power-hungry than Nvidia’s.

Tenstorrent’s “secret ingredient” is its embrace of RISC-V, an open-standard processor that Keller swears by. If Nvidia’s tech is a gated mansion with a hefty HOA fee, RISC-V is the public park everyone can enjoy (assuming they know how to skate). “You can’t beat Nvidia if you use HBM,” Keller said, referring to the pricey memory tech Nvidia hoards like a dragon with gold. “But they’ll never bring the price down.” Basically, Nvidia’s dominance comes at a premium, and Keller’s betting that the market’s getting tired of buying Gucci chips for Walmart budgets.

But let’s not act like Tenstorrent’s path is paved with gold-plated processors. Nvidia’s ability to develop and launch new chips annually keeps it ahead of the curve, while Tenstorrent’s production schedule is significantly slower.

However, the recent $700 million investment will allow the company to expand its engineering team, secure a stable supply chain, and develop AI training servers to showcase its capabilities.

(Source: Samsung)

Looking ahead, Tenstorrent is partnering with industry giants like TSMC and Samsung to produce 2-nanometer chips, expected to roll out next year. If the company can deliver on its promises, it could start closing the gap with Nvidia.

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