Amazon (AMZN) founder Jeff Bezos has joined Samsung in a $700 million funding round for Tenstorrent, valuing the AI chip startup at approximately $2.6 billion. The round, led by South Korea’s AFW Partners and Samsung Securities, reflects growing confidence in Tenstorrent’s bid to challenge Nvidia’s (NVDA) dominance in the AI chip market. Other notable investors in Tenstorrent include LG Electronics and Fidelity, alongside Bezos Expeditions.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
What Is Tenstorrent All About?
Tenstorrent, founded by semiconductor pioneer Jim Keller, aims to disrupt Nvidia’s stronghold with innovative chip technology. The company plans to allocate the funding toward expanding its engineering team, strengthening its global supply chain, and developing large AI training servers to showcase its technology.
Furthermore, Tenstorrent plans to use open-source and widely used technology to offer a cost-effective alternative to Nvidia’s power-intensive chips, avoiding expensive components like high-bandwidth memory.
Is Amazon a Buy, Sell, or Hold?
Analysts remain bullish about AMZN stock, with a Strong Buy consensus rating based on 45 Buys and one Hold. Over the past year, AMZN has increased by more than 40%, and the average AMZN price target of $239 implies an upside potential of 12.6% from current levels.
