FuriosaAI, a fast-growing AI chip startup from South Korea, has turned down an $800 million acquisition offer from Meta. Instead of joining the tech giant, the company will focus on building its own AI chips. Local reports say the deal fell apart due to disagreements over strategy and structure, not price.
Why Did FuriosaAI Say No?
The buyout could have brought in big money but FuriosaAI had something else in mind. The company wanted to keep control over their technology and future. However, a merge with Meta might have forced them to fit into a plan that wasn’t their own.
The AI chip market is booming and many big tech companies like Meta, Google, and Amazon are striving to build their own AI hardware. Therefore, FuriosaAI sees an opportunity to grow on its own terms instead of being absorbed by a larger corporation.
Meta’s Search for AI Chip Power
Meta’s interest in FuriosaAI is a strategic one. The company wants to reduce its reliance on Nvidia, the leading AI chipmaker. Right now, Nvidia’s GPUs power most large language models (LLMs) but high demand and supply issues make companies look for other options.
Last year, Meta launched its own custom AI chips. In January, it also announced a $65 billion investment in AI infrastructure. Acquiring FuriosaAI could have given Meta a shortcut to stronger AI stakes.
Also read: China is Getting Nvidia AI Chips Despite Ban
Raising $48M to Grow
Instead of selling, FuriosaAI is moving on to other things. Reports say the company is in talks to raise about $48 million (KRW 70 billion). This funding will help expand its production and bring new AI chips to market.
A New Competitor to Nvidia and AMD
Founded in 2017 by June Paik, a former Samsung and AMD expert, FuriosaAI has developed two powerful AI chips: Warboy, designed for demanding AI tasks, and Renegade (RNGD), for reasoning models and AI inference.
The company has already tested RNGD in partnership with LG AI Research and Aramco. LG AI Research plans to use these chips in its AI systems as the chips have demonstrated high potential. FuriosaAI aims to launch RNGD later this year.
