Korean chip startup FuriosaAI has rejected an $800 million acquisition offer from Meta Platforms Inc., opting to develop its business independently, according to a source familiar with the situation.
Discussions regarding the acquisition of the Seoul-based FuriosaAI by Meta began earlier this year, as noted by the source. A spokesperson for FuriosaAI declined to provide any comments, and Meta representatives were unavailable for comment outside of regular business hours on Sunday.
FuriosaAI is among a select group of Asian startups that have caught Meta’s attention. Under the leadership of June Paik, a former employee of Samsung Electronics Co. and Advanced Micro Devices Inc., the company specializes in creating semiconductors for AI inferencing services.
The eight-year-old firm’s second-generation processor, RNGD (pronounced “Renegade”), aims to compete with products from industry leader Nvidia Corp. as well as other startups like Groq Inc., SambaNova Systems Inc., and Cerebras Systems Inc.
Shares of South Korea-based venture capital firm DSC Investment Inc., a major investor in FuriosaAI, fell over 16% on Monday. The stock had previously surged following reports of the potential Meta acquisition in February.
Meta is making significant investments in artificial intelligence infrastructure to enhance its competitiveness against companies like OpenAI and Google, as well as emerging players such as Hangzhou-based DeepSeek.
In mid-January, CEO Mark Zuckerberg announced that Meta plans to invest up to $65 billion this year, which includes funding for a large data center and an expansion of its AI workforce.
Just a week later, Zuckerberg informed investors that Meta expects to invest hundreds of billions of dollars in AI infrastructure over time.
The company, based in Menlo Park, California, is also developing its own chips tailored for its AI tasks, which include enhancing ad ranking and recommendations on Facebook and Instagram. In 2023, it launched its first custom AI inference chips and revealed an upgraded version the following year.
FuriosaAI is looking to secure funding before moving forward with an initial public offering, as per sources familiar with the situation. They anticipate completing an extended Series C funding round in about a month, which is projected to surpass the initial target.
The startup employs around 150 people, with 15 based in its Silicon Valley office, and is currently providing chip samples to clients such as LG AI Research, the AI division of LG Group, and Saudi Aramco. These clients are part of a larger group of approximately a dozen customers testing samples in the first half of this year.
Its newest chip, RNGD, is manufactured using Taiwan Semiconductor Manufacturing Co.’s 5-nanometer process and incorporates HBM3 memory chips from SK Hynix Inc.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
