The appetite for hardware to train AI models is voracious.

AI chips are forecast to account for up to 20% of the $450 billion total semiconductor market by 2025, according to McKinsey. And The Insight Partners projects that sales of AI chips will climb to $83.3 billion in 2027 from $5.7 billion in 2018, a compound annual growth rate 35%. (That’s close to 10 times the forecast growth rate for non-AI chips.)

Case in point, Tenstorrent, the AI hardware startup helmed by engineering luminary Jim Keller, this week announced that it raised $100 million in a convertible note funding round co-led by Hyundai Motor Group and Samsung Catalyst Fund.

Indeed, $50 million of the total came from Hyundai’s two car-making units, Hyundai Motor ($30 million) and Kia ($20 million), which plan to partner with Tenstorrent to jointly develop chips, specifically CPUs and AI co-processors, for future mobility vehicles and robots. Samsung Catalyst and other VC funds, including Fidelity Ventures, Eclipse Ventures, Epiq Capital and Maverick Capital, contributed the remaining $50 million.Unlike equity, a convertible note is short-term debt that converts to equity upon some predetermined event. Why Tenstorrent opted for debt over equity isn’t entirely clear — nor is the company’s post-money valuation. (Tenstorrent described it as an “up-round” in a release.) Tenstorrent last raised $200 million at a valuation eclipsing $2 billion.

The convertible note tranche, which had participation from Fidelity Ventures, Eclipse Ventures, Epiq Capital, Maverick Capital and more, brings Tenstorrent’s total raised to $334.5 million. Keller says it’ll be put toward product development, the design and development of AI chiplets and Tenstorrent’s machine learning software roadmap.

Toronto-based Tenstorrent sells AI processors and licenses AI software solutions and IP around RISC-V, the open source instruction set architecture used to develop custom processors for a range of applications.