Jeff Bezos and Samsung have invested US$700 million in Tenstorrent, an AI chip startup based in Santa Clara, now valued at about US$2.6 billion.

The funding round was led by AFW Partners and Samsung Securities of South Korea, with participation from LG Electronics, Fidelity, and Bezos Expeditions.

Tenstorrent will use the investment to grow its engineering team, enhance its global supply chain, and develop AI training servers to demonstrate its chip technology.

Tenstorrent plans to offer affordable chip designs utilizing open-source technologies, a contrast to Nvidia’s expensive high-bandwidth memory.