FuriosaAI rejects $800m acquisition offer from Meta

Meta’s attempt to acquire the company for $800 million was thwarted by differences over post-acquisition strategy, pushing the startup to pursue independent growth.
Disagreements over business strategy led to the breakdown of FuriosaAI’s acquisition talks with Meta, despite the $800 million offer.

FuriosaAI, a South Korean startup specialising in AI chips, has reportedly turned down an $800 million acquisition offer from Meta.

Instead of selling, FuriosaAI plans to continue developing its AI chips. Disagreements over post-acquisition business strategy and organisational structure were reportedly the cause of the breakdown in negotiations, rather than issues over price.

Meta, which has been trying to reduce its reliance on Nvidia for chips specialised in training large language models (LLMs), unveiled its custom AI chips last year. The company also announced plans to invest up to $65 billion this year to support its AI initiatives.

FuriosaAI, founded in 2017 by June Paik, who previously worked at Samsung Electronics and AMD, has developed two AI chips—Warboy and Renegade (RNGD).

The startup is also in talks to raise approximately $48 million and is planning to launch the RNGD chips later this year, with LG AI Research already testing them for use in its AI infrastructure.

FuriosaAI’s decision to focus on expanding its chip production signals its confidence in competing with giants like Nvidia and AMD in the rapidly growing AI hardware market.

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