FuriosaAI, a South Korean AI chip startup, has chosen to pursue its mission independently, rather than accept an $800 million acquisition offer from Meta.
That decision now appears strategic: FuriosaAI has announced a major partnership with LG AI Research.
Under the agreement, FuriosaAI will supply its flagship chip, RNGD, to support LG’s newly launched hybrid AI platform, EXAONE 4.0.
This collaboration targets key sectors, including electronics, telecommunications, finance, and biotechnology.
Rejecting Meta
The decision to walk away from Meta raised eyebrows. Few startups decline such a lucrative deal. However, CEO June Paik made the company’s reasoning clear.
“We want to continue our mission,” Paik told TechCrunch. “This is an exciting opportunity to make AI computing more sustainable.”
Local media reported that the deal fell apart due to disagreements over strategy and organizational structure.
Price was not the issue. Meta’s interest in FuriosaAI was part of its bigger goal to reduce reliance on third-party suppliers like Nvidia.
Partnering with LG
LG AI Research recently unveiled EXAONE 4.0, its next-generation AI platform.
The model is designed to support large language models (LLMs) and various enterprise applications.
To optimize performance, LG selected FuriosaAI’s RNGD chip, an alternative to Nvidia. Now, major firms are beginning to explore alternatives.
“LG AI’s EXAONE will not be limited to LG alone,” Paik explained. “It will play a central role in the Korean AI ecosystem and will also be adopted by global customers.”
Industry Giants
FuriosaAI is not just another chip company. Its technology directly challenges Nvidia’s dominance.
According to the startup, its RNGD chip offers 2.25 times better inference performance than competing GPUs when used with LG’s models. It also consumes less energy.
“We had to prove that our solution delivers strong performance while lowering total cost of ownership,” Paik said.
Unlike general-purpose GPUs, RNGD is purpose-built for AI. The chip is not designed for rendering or crypto mining. Instead, it efficiently supports a wide range of AI models.
A Lean Team
Despite its offering, FuriosaAI remains a small company. It employs only 15 people across its offices in Seoul and Santa Clara.
However, the company’s reach extends far beyond its size.
