Startup FuriosaAI rejects $800 million acquisition offer from Meta
FuriosaAI stays independent despite $800 million offer from Meta
FuriosaAI, a South Korean semiconductor startup focused on AI inferencing, has turned down an $800 million acquisition offer from Meta Platforms Inc., choosing instead to pursue its growth independently.
The decision, revealed by a source familiar with the matter, came after discussions between Meta and FuriosaAI began earlier this year. Meta’s interest in the startup underscores its strategic focus on bolstering its artificial intelligence (AI) capabilities to compete with rivals like OpenAI and Google, reports Bloomberg.
FuriosaAI, founded by June Paik, a former executive at Samsung Electronics and Advanced Micro Devices, is developing cutting-edge processors designed to challenge the dominance of Nvidia and other semiconductor firms in the AI space.
The company’s second-generation processor, RNGD (pronounced “Renegade”), aims to compete with Nvidia’s products as well as those of startups such as Groq, SambaNova Systems, and Cerebras Systems.
A Strategic Focus on AI Infrastructure
Meta has been heavily investing in AI infrastructure, with CEO Mark Zuckerberg pledging up to $65 billion in AI initiatives for 2024 alone. Meta's efforts include building data centers and expanding its AI workforce, along with developing custom AI chips for its platforms, including Facebook and Instagram.
Meta’s interest in FuriosaAI was seen as part of this broader strategy to gain an edge in AI development, which also includes creating its own chips tailored for AI workloads.
While Meta’s offer was seen as a significant validation of FuriosaAI’s potential, the startup’s decision to remain independent reflects its ambition to scale on its own terms. FuriosaAI plans to raise additional capital in its ongoing Series C funding round, which is expected to exceed its initial target, with an eventual goal of pursuing an initial public offering (IPO).
Strategic Partnerships and Future Growth
FuriosaAI is already supplying samples of its RNGD chips to customers including LG AI Research and Saudi Aramco, with a broader customer pipeline in place for the first half of the year.
With a workforce of around 150 employees, including 15 in Silicon Valley, FuriosaAI is poised for continued growth, building on its innovative technology and expanding its presence in the global AI market.
FuriosaAI’s success is seen as a major step for Asian startups in the competitive AI hardware sector. By rejecting Meta’s buyout offer, the company signals its intent to become a significant player in the global AI infrastructure landscape.
Reminder, Chinese AI startup Zhipu AI has secured more than 1 billion yuan ($137.22 million) in fresh funding, just months after raising 3 billion yuan ($412 million) in December.
