Tensorwave, a data center provider building facility that primarily uses AMD hardware, has raised $100 million as it attempts to further build its data center infrastructure.

The financing was led by Magnetar and AMD Ventures and raised the company's total capital to $146.7 million, according to Crunchbase. Maverick Silicon, Nexus Venture Partners and Prosperity7 also participated in the round.

This is the unstable time for data center projects. According to TD Cowen's analysis, rising tariff prices on components such as server racks and chips may help overall data center costs increase by 5% to 15%.

Investors are also wary of the accumulation of excessive capacity of such projects, especially as the number of cheap AI services continues to grow. Overcapacity is reportedly one of the factors that delayed Openai’s ambitious $500 billion Stargate Data Center project.

Tensorwave, Las Vegas, Nevada, claims that business has not slowed down. CEO Darrick Horton said the company had operating rate revenues of more than $100 million and the company had operating rate revenues of more than $100 million, a 20-fold increase from the same period last year.

NVIDIA is the most popular hardware provider for data centers for training and running AI models. But Tensorwave accepted AMD early on, aiming to provide cloud services at a lower price.

Tensorwave recently deployed a "dedicated training" cluster of approximately 8,000 AMD Instinct MI325X GPUs. Holden said the new capital will enable the company to grow the cluster and expand its workforce and support “operational growth.”

Tensorwave currently has a team of about 40 people and is expected to have more than 100 employees by the end of the year.

“This $100 million funding has driven Tensorwave’s mission to gain access to cutting-edge AI computing,” Holden added. “Our 8,192 Instinct MI325X GPU cluster is just the beginning of our establishment as an emerging AMD-driven leader in the rapidly expanding AI infrastructure market.”

Other data center providers bet on AMD's AI chips, ranging from startups like Lamini and Nscale to larger, more entrenched cloud providers such as Azure and Oracle.

Horton and Jeff Tatarchuk created Tensorwave (above; left) and Piotr Tomasik (above; right; right). Tatarchuk previously launched Cloud Vendor Vmaccel with Horton and sold another startup to Rolo to get Digital Identity Firm Kirlkey Kirmkey. Horton co-founded Vaultminer Technologies, a crypto mining company, with VMACCEL's corporate parents. As for Tomasik, he co-launched the influence of an influential marketer website and is the second co-founder of Lets Rolo.