FuriosaAI Rejects Meta's $800 Million Acquisition Offer
FuriosaAI turns down Meta's $800M buyout offer to grow independently, betting on its AI chip innovation to compete with tech giants.
Seoul-based AI chip startup FuriosaAI has decided against accepting an $800 million buyout proposal from Meta Platforms Inc., opting instead to pursue its independent growth strategy. According to a source familiar with the situation, the companies had been in talks since the beginning of the year, but FuriosaAI ultimately chose to remain autonomous. The source requested anonymity as the information remains confidential. Representatives from both FuriosaAI and Meta have not commented on the matter.
Meta has been aggressively investing in artificial intelligence infrastructure to compete with leading tech firms like OpenAI, Google, and emerging players such as China's DeepSeek. CEO Mark Zuckerberg recently outlined plans to allocate up to $65 billion this year for AI-related projects, including data center expansions and workforce growth. Furthermore, Zuckerberg signaled that Meta could eventually spend hundreds of billions on AI infrastructure. The company has also been working on proprietary AI chips to enhance its platform’s ad recommendation and content ranking capabilities.
FuriosaAI has emerged as one of the notable AI semiconductor innovators in Asia, drawing interest from global technology companies. Founded eight years ago and led by CEO June Paik, a former executive at Samsung Electronics and Advanced Micro Devices, the company specializes in AI inferencing chips. Its latest product, the second-generation RNGD (pronounced "Renegade") processor, is designed to compete with products from Nvidia Corp. and other startups like Groq Inc., SambaNova Systems Inc., and Cerebras Systems Inc.
Choosing independence over acquisition, FuriosaAI plans to raise additional funds in a Series C extension round that is expected to surpass its initial target. The company is also considering an initial public offering (IPO) as part of its long-term growth strategy.
With approximately 150 employees, including a Silicon Valley presence, FuriosaAI has begun distributing chip samples to potential clients. Among its initial customers are LG AI Research, part of the LG Group, and Saudi Aramco. The company anticipates expanding its customer base, with a dozen firms currently testing its chips.
Manufactured using Taiwan Semiconductor Manufacturing Co.'s 5-nanometer process, the RNGD chip also utilizes HBM3 memory from SK Hynix Inc. With its continued focus on technological advancements, FuriosaAI remains committed to driving innovation and establishing a competitive presence in the global AI semiconductor market.
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