Tenstorrent, a Canadian AI chip startup, has chosen Samsung's foundry division to produce its next-generation chiplets, which are intended to enable a range of applications from edge devices to data centers.

Tenstorrent is one of many companies attempting to compete with Nvidia, which now controls the market for AI chips. The company works on providing other markets, such the automobile industry, in addition to producing chips and intellectual property for data centers.

Tenstorrent kept the financial information or the size of the contract under wraps and said that Samsung's foundry design service team will assist it in producing and marketing chiplets.

The chips will be made using a cutting-edge manufacturing technique known as 4nm from Samsung. The Tenstorrent product, created by Samsung, is a chiplet that is intended to be packaged with other chiplets.

The four-nanometer technology from Samsung is intended for high-performance CPUs and GPUs.

An open-source semiconductor design known as RISC-V, which is used in some of Tenstorrent's chips, competes with the Arm and x86 architectures used by Intel and Advanced Micron Devices.

Quasar is the name of the chip that Samsung will produce; it is not based on RISC-V technology.

In August, Samsung invested in Tenstorrent as part of a $100 million capital raising that also included Hyundai Motor Co. and other companies. The chip contract came after Samsung's investment.

Tenstorrent creates cutting-edge AI hardware accelerators and chips using the RISC-V technology and open-source semiconductor architecture, enabling programmers to customize processors for particular applications.

The startup received $100 million in capital in August from the investment arm of Samsung and Hyundai Motor Group. Prior to that, it had a $1 billion valuation and raised about $235 million.