Samsung invests $700 million in NVIDIA's AI chip competitor

Samsung is investing $700 million together with Jeff Bezos in Tenstorrent, a company that intends to challenge NVIDIA in the AI chip market.

Here's What We Know

Tenstorrent has received $700 million from investors such as Samsung, Jeff Bezos, and LG Electronics. The company is currently valued at more than $2.6 billion.

Tenstorrent develops chips that are supposed to be cheaper and more energy efficient than NVIDIA chips.

The company focuses on using open technologies to avoid expensive components, such as high-bandwidth memory, which NVIDIA uses.

Tenstorrent CEO Jim Keller, who has experience at Apple, Tesla, and AMD, said that even with such investments, NVIDIA will not be able to reduce the prices of its chips.

The company's own chip production will be carried out by Samsung and TSMC with a focus on the 2-nm process, which should be available by 2025. This investment could bring significant profits to Samsung in the future.

Source: Bloomberg