Hyundai Motor Group Increases Investment in AI Sector, Injects $50 Million into AI Semiconductor Startup
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On August 3rd, foreign media reported that Hyundai Motor Group, which has invested 1.3 trillion KRW in startups in autonomous driving, artificial intelligence, and electrification from 2017 to Q1 this year, continues its investment spree by announcing a strategic investment in AI semiconductor startup Tenstorrent.
Hyundai Motor Group announced on its official website on Thursday local time that it will invest $50 million in Tenstorrent, with contributions from its subsidiaries Hyundai Motor and Kia—$30 million from the former and $20 million from the latter.
This $50 million investment makes Hyundai Motor Group the lead investor in Tenstorrent's latest funding round, which totals $100 million.
Tenstorrent is an AI semiconductor company headquartered in Toronto, Canada, founded in 2016. It specializes in developing processors that accelerate AI and machine learning workloads. The $100 million from the new funding round will accelerate Tenstorrent's design and development of AI chips and machine learning software.
Hyundai Motor Group's $50 million investment in Tenstorrent is driven by its interest in the startup's AI technology. This strategic investment will enable Hyundai to integrate Tenstorrent's AI into vehicles from Hyundai, Kia, and Genesis, as well as future products like robots and aerial mobility solutions.
As automotive intelligence advances, particularly in autonomous driving technology, established automakers like Hyundai are ramping up their AI investments. Investing in startups is one of their key strategies to expand their AI capabilities.