Samsung and Hyundai invest $100M in AI chip startup Tenstorrent

AI chip startup Tenstorrent announced that it raised $100 million in a convertible note funding round co-led by Hyundai Motor Group and Samsung Catalyst Fund. $50 million of the total came from Hyundai’s two car-making units, while Samsung Catalyst and other VC funds investing $50 million.

Hyundai Motor and Kia plan to partner with Tenstorrent to jointly develop chips, specifically CPUs and AI co-processors, for future mobility vehicles and robots. The AI chip startup last raised $200 million at a valuation eclipsing $2 billion.

AI Chip Market

AI chips are forecast to account for up to 20% of the $450 billion total semiconductor market by 2025, according to McKinsey. And The Insight Partners projects that sales of AI chips will climb to $83.3 billion in 2027 from $5.7 billion in 2018, a compound annual growth rate of 35%.

Via – TechCrunch