<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, 1998 and is qualified in its entirety by reference to such financial 
statements.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                       3,161,867
<SECURITIES>                                         0
<RECEIVABLES>                                  378,933
<ALLOWANCES>                                         0
<INVENTORY>                                 10,246,029
<CURRENT-ASSETS>                            15,094,490
<PP&E>                                       7,960,326
<DEPRECIATION>                             (3,458,713)
<TOTAL-ASSETS>                              20,288,237
<CURRENT-LIABILITIES>                        7,825,896
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  5,674,406
<COMMON>                                    68,744,437
<OTHER-SE>                                (62,529,556)
<TOTAL-LIABILITY-AND-EQUITY>                20,288,237
<SALES>                                      1,987,993
<TOTAL-REVENUES>                             1,987,993
<CGS>                                      (1,815,539)
<TOTAL-COSTS>                              (1,815,539)
<OTHER-EXPENSES>                          (22,223,077)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                           (187,759)
<INCOME-PRETAX>                           (19,804,238)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                       (19,804,238)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                              (20,736,628)
<EPS-PRIMARY>                                   (1.70)
<EPS-DILUTED>                                   (1.70)