FuriosaAI rejects an acquisition offer of $800 million from Meta

The South Korean startup FuriosaAI, specialized in the production of chips for artificial intelligence applications, has rejected an acquisition offer of 800 million dollars from Meta. 

The company has decided to continue independently in the development and production of its chips, according to local sources. The negotiation broke down not because of the price, but due to differences in business strategy following the acquisition.

The South Korean company therefore continues to focus on innovation in the AI chip sector, consolidating its position in an increasingly competitive market. 

In parallel, FuriosaAI is engaged in a new fundraising of about 48 million dollars (70 billion won) to finance the development of its technologies.  

Meta aims for independence from Nvidia chips, but FuriosaAI ruins its plans

In the global context of artificial intelligence, many tech giants are trying to reduce their dependence on chips produced by Nvidia, which are essential for the training and development of large language models (LLM).

Meta, in particular, aims to build its own hardware infrastructure dedicated to AI. Already in 2023, the company announced custom AI chips and, in January 2024, revealed a plan of 65 billion dollars to support its initiatives in the sector.  

The potential acquisition of FuriosaAI would have represented an important step for Meta in building an independent supply chain for AI chips, but strategic differences led to the failure of the negotiations.  

FuriosaAI: a startup with global ambitions

FuriosaAI was founded in 2017 by June Paik, a former engineer with experience in leading companies such as Samsung Electronics and AMD. The company has developed two innovative chips to date intended for artificial intelligence applications: Warboy and Renegade (RNGD).

The startup aims to compete with big names in the industry, such as Nvidia and AMD, offering alternative solutions for advanced AI computing. 

RNGD, in particular, has been designed for reasoning models, one of the key areas in the evolution of artificial intelligence.  

According to reports, FuriosaAI has completed tests on RNGD in collaboration with prominent companies such as LG AI Research and Aramco. LG AI Research plans to integrate RNGD chips into its AI infrastructure, and FuriosaAI has announced that it will officially launch the product by the end of the year.  

The AI chip industry: a strategic market in strong growth

The global market for chips dedicated to artificial intelligence is continuously expanding. The demand is driven by the need for computing power to develop and operate increasingly complex AI models.  

Dominating the market is Nvidia, whose chips are widely used for the training of neural networks and advanced AI applications. 

However, various tech companies are investing in their own solutions to reduce dependence on the U.S. company. In addition to Meta, other big players in the sector like Google, Microsoft, and Amazon are also diversifying their AI chip supplies.  

In this context, FuriosaAI represents an emerging and ambitious alternative, capable of attracting the attention of giants like Meta, but also of developing strategic collaborations with leading companies in the technology sector.  

FuriosaAI looks to the future with a new fundraising  

As it continues to develop its chips, FuriosaAI is currently raising funds for 48 million dollars to finance its activities. The goal is to close the funding round by the end of the month, ensuring the necessary resources to accelerate the production and commercial distribution of RNGD.  

This strategy will allow the startup to consolidate its position in the sector and continue to innovate, without having to depend on an acquisition by a giant like Meta.  

The refusal of FuriosaAI to Meta’s offer of 800 million dollars reflects the growing importance of emerging companies in the AI chip sector.

The South Korean startup focuses on independence and innovation, challenging big names like Nvidia and AMD.  

The competition in the sector is becoming increasingly intense, with Meta and other big tech seeking alternatives to Nvidia chips. 

In the meantime, FuriosaAI continues its expansion and prepares for the launch of RNGD, strengthening its role in a strategic sector for the future of artificial intelligence.