Samsung’s contract chip manufacturing division has announced a new collaboration with the Canadian startup Tenstorrent, marking a significant stride into the world of artificial intelligence (AI) chip production. The partnership comes as Tenstorrent joins a group of startups aiming to challenge the dominance of Nvidia (NVDA.O) in the AI chip market.
Tenstorrent is actively involved in designing chips and intellectual property for data centers while simultaneously exploring opportunities to supply other sectors, including the automotive industry.
As part of this newly formed alliance, Tenstorrent intends to leverage Samsung’s cutting-edge manufacturing capabilities, specifically its advanced 4nm manufacturing process, to produce its AI chips. Notably, the Tenstorrent product to be manufactured by Samsung is a chipset, engineered to operate alongside other chipsets within a single package.
Although specific financial details of the deal and the number of chips involved have not been disclosed by either party, this partnership holds significant implications for the evolving landscape of AI chip development.
Some of Tenstorrent’s existing chips utilize RISC-V technology, an open-source semiconductor architecture that competes with established players such as Arm and x86, which are favored by Intel (INTC.O.) and Advanced Micro Devices (AMD.O.). However, it’s important to note that the chip Samsung will be manufacturing for Tenstorrent, known as Quasar, is not based on RISC-V technology.
Commenting on the partnership, Jim Keller, CEO of Tenstorrent, stated, “Tenstorrent’s focus is on developing high-performance compute solutions and delivering them to customers worldwide.”
This agreement follows a strategic investment by Samsung in Tenstorrent in August as part of a larger $100 million capital-raising effort. Notable contributors to this capital raise included Hyundai Motor Co. (005380.KS), among others.
Before the August funding round, Tenstorrent had successfully raised $234.5 million in capital, positioning the startup at a valuation of $1 billion. This strategic partnership with Samsung demonstrates the growing significance of AI chip development in the tech industry and underscores the desire of emerging players like Tenstorrent to challenge established leaders in the field.