In a significant move within the tech industry, Jeff Bezos and Samsung have jointly invested $700 million in the AI chip startup Tenstorrent, valuing the company at $2.6 billion. This funding round, led by AFW Partners and Samsung Securities, aims to bolster Tenstorrent's efforts to create cost-efficient AI chips that can compete with Nvidia's dominant position in the market. [105ae450]
Tenstorrent has already secured contracts worth nearly $150 million, indicating strong market interest in its products. The company plans to release new AI processors every two years, with its current chips being manufactured by GlobalFoundries. Future production is expected to shift to industry giants TSMC and Samsung, as Tenstorrent designs its chips for advanced 2-nanometre fabrication technology, with mass production anticipated to begin next year. [105ae450]
This investment comes at a time when Japan is also ramping up its efforts in the semiconductor and AI sectors, committing $65 billion to enhance its technological capabilities. Japan's initiatives include support for the Rapidus project to boost semiconductor production and collaborations with companies like SoftBank and Nvidia to develop an 'AI grid'. [2041f3c7]
As the global competition in AI technology intensifies, South Korean chipmakers like SK Hynix and Samsung are also gaining attention from hedge funds looking to capitalize on the AI boom. SK Hynix reported a significant revenue increase driven by demand for AI hardware, while the South Korean government continues to support its chip industry with new initiatives. [23fff3e6]
The ongoing developments in the semiconductor landscape highlight the critical role of investments and collaborations in shaping the future of AI technology. With companies like Tenstorrent entering the fray, the competition is set to become even more fierce in the coming years. [105ae450]