<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the audited
financial statements of Tera Computer Company for the year ended Dec 31, 1997
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                      13,329,115
<SECURITIES>                                         0
<RECEIVABLES>                                   99,696
<ALLOWANCES>                                         0
<INVENTORY>                                  4,290,873
<CURRENT-ASSETS>                            18,823,831
<PP&E>                                       4,570,975
<DEPRECIATION>                             (2,656,050)
<TOTAL-ASSETS>                              20,859,385
<CURRENT-LIABILITIES>                        4,481,493
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  8,545,709
<COMMON>                                    52,208,938
<OTHER-SE>                                  44,909,076
<TOTAL-LIABILITY-AND-EQUITY>                20,859,385
<SALES>                                         73,531
<TOTAL-REVENUES>                                73,531
<CGS>                                         (51,891)
<TOTAL-COSTS>                                 (51,891)
<OTHER-EXPENSES>                          (16,126,276)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              27,237
<INCOME-PRETAX>                           (15,755,229)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                       (15,755,729)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                              (17,863,987)
<EPS-PRIMARY>                                   (2.03)
<EPS-DILUTED>                                   (2.03)