Korean AI chip startup FuriosaAI has rejected an $800 million acquisition offer from Meta Platforms Inc., opting to continue growing as an independent company, according to sources familiar with the matter. Meta had been in discussions to acquire the Seoul-based firm since the beginning of the year, but FuriosaAI declined the offer, with no official comment from either company.
FuriosaAI’s Vision: Competing with Industry Giants
Founded eight years ago and led by June Paik, a former executive at Samsung Electronics Co. and Advanced Micro Devices Inc., FuriosaAI focuses on developing AI inference semiconductors to rival products from market leaders like Nvidia Corp. and rising challengers such as Groq Inc., SambaNova Systems Inc., and Cerebras Systems Inc.
The company’s latest second-generation processor, RNGD (pronounced “Renegade”), is built using Taiwan Semiconductor Manufacturing Co.’s 5-nanometer process and uses HBM3 memory chips supplied by SK Hynix Inc. This positions FuriosaAI as one of the few Asian startups competing in a space dominated by US and Chinese tech giants.
Meta’s Aggressive AI Investment Strategy:
Meta’s attempt to acquire FuriosaAI aligns with its broader strategy to strengthen AI infrastructure and compete with OpenAI, Google, and DeepSeek. CEO Mark Zuckerberg recently announced plans to spend up to $65 billion this year, including investments in building large data centers and expanding its AI workforce. Additionally, Meta is developing its custom AI inference chips to support ad ranking and recommendations across Facebook and Instagram.
FuriosaAI’s Growth Trajectory and IPO Plans:
Despite Meta’s interest, FuriosaAI remains committed to its vision of growth and is preparing to raise capital through an extended Series C funding round, expected to close in about a month. Sources indicate that the round is on track to exceed the targeted amount.
The startup, with 150 employees, including 15 based in Silicon Valley, is currently providing samples of its chips to major clients such as LG AI Research and Saudi Aramco. It has a growing customer pipeline, with around a dozen companies engaged in sampling during the first half of the year.
Impact on Backers and Market Response:
News of FuriosaAI’s rejection of Meta’s offer sent shockwaves through its investor base. Shares of DSC Investment Inc., a prominent backer of FuriosaAI, plunged by over 16% on Monday. The stock had previously surged following rumors of the Meta takeover that surfaced in February.
Future Outlook: Charting an Independent Course
As FuriosaAI gears up for future growth and an eventual initial public offering (IPO), its decision to reject Meta’s offer reflects confidence in its ability to compete independently in the global AI chip market. The company’s innovative technology and growing client base position it as a formidable challenger to established industry leaders.
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