Samsung Partners with Canadian Startup Tenstorrent to Develop Next-Gen AI Chips

In this post:

  • Samsung teams up with Tenstorrent to challenge Nvidia’s AI chip dominance.
  • European regulators clarify stance on AI chip antitrust investigations.
  • Global partnerships signal the strategic importance of AI chip technology.

The race to develop advanced AI chips for data centers continues to heat up as Samsung’s chip manufacturing department announces a strategic partnership with Canadian startup Tenstorrent. This collaboration aims to produce cutting-edge AI chips and intellectual property (IP) to power the next generation of AI systems. Tenstorrent specializes in AI processors and related technologies and seeks to leverage Samsung’s advanced manufacturing capabilities to bring innovative chiplets to market.

A leap in chip manufacturing

Tenstorrent’s partnership with Samsung includes access to one of Samsung’s advanced manufacturing processes, the SF4X process, coupled with the 4nm architecture. This combination of expertise and resources will enable the development of high-performance AI chiplets that can be seamlessly integrated with other chiplets in a single package. The goal, according to Jim Keller, the CEO of Tenstorrent, is to deliver these solutions to customers around the world.

Funding boost for tenstorrent

In August, Tenstorrent closed a $100 million funding round, which was led by both Samsung and automotive manufacturer Hyundai. These funds were earmarked for accelerating product development, designing AI chiplets, and creating a roadmap for machine learning software. This financial injection underscored the growing interest and investment in AI chip technology, further fueling the competition in the industry.

The AI chip market landscape

Nvidia currently holds a dominant position in the AI chip market, known for its powerful chips that have propelled AI development to new heights. However, the market is becoming increasingly competitive, with companies like Tenstorrent and Samsung aiming to challenge Nvidia’s leadership.

Earlier this year, Nvidia briefly achieved a remarkable milestone when its market valuation tipped $1 trillion amid the AI frenzy. While Nvidia’s chips have been at the forefront of innovation, they recently faced scrutiny from authorities in France in an antitrust investigation. French antitrust authorities initiated a general inquiry into the cloud computing sector, leading to police raids on Nvidia offices in the country.

International antitrust and regulatory scrutiny

In response to the events in France, on October 2, the European Commission clarified that EU antitrust regulators had not formally launched an investigation into AI chips, as reported by Reuters. This highlights the increased global attention on regulating the AI chip industry.

Meanwhile, in the United States, regulators have been actively pursuing greater control over the industry. In October 2022, they issued a ban on exporting high-level Nvidia technology to China, with subsequent measures further tightening restrictions. Notably, Nvidia, as an American company, is subject to U.S. regulations and oversight.

International collaborations

While regulatory scrutiny intensifies, international collaborations are also gaining prominence. The United States recently entered into a substantial deal with Vietnam, a traditional trading partner with China and a former adversary of the U.S. This agreement involves investments worth billions of dollars in the AI chip and AI tech sectors. This demonstrates the strategic importance of AI chip technology on a global scale.

As the race to develop the most powerful AI chips continues, partnerships like the one between Samsung and Tenstorrent are poised to play a significant role in shaping the future of AI systems. These collaborations not only aim to challenge established leaders but also to drive innovation, ensuring that the next generation of AI chips meets the ever-growing demands of the AI industry. With technological advancements and regulatory developments on the horizon, the landscape of AI chip development remains dynamic and highly competitive.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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