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The Tech Basic > News > FuriosaAI Rejects Meta’s $800M Offer to Focus on AI Chips
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FuriosaAI Rejects Meta’s $800M Offer to Focus on AI Chips

Emeka Victor
Last updated: 24 March 2025 21:33
Emeka Victor
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Image Source: The Korea Post
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A South Korean startup, FuriosaAI, has turned down an $800 million offer from Meta, the company behind Facebook and Instagram. Instead of selling, FuriosaAI wants to keep working on its AI chips. The main reason for saying no was disagreements about how the company would run after the sale. FuriosaAI believes it can grow better on its own.

June Paik launched the startup in 2017 after leaving her roles at both Samsung and AMD. FuriosaAI makes special chips for artificial intelligence tasks. Two of its chips, named Warboy and Renegade (also called RNGD), are set to compete with big companies like Nvidia and AMD.

Why FuriosaAI Chose Independence Over Meta’s Money

Meta wanted to buy FuriosaAI to help build its own AI chips. Meta is trying to rely less on Nvidia, a company known for powerful AI chips. Last year, Meta made its own AI chips and plans to spend $65 billion on AI projects this year. Buying FuriosaAI could have saved Meta time, but FuriosaAI did not agree with how Meta wanted to manage things after the deal.

FuriosaAI
Image Source: www.chosun.com

FuriosaAI’s leaders wanted to keep control of their plans and products. They did not want to lose their independence. The disagreement was not about the price but about how the company would operate. This shows FuriosaAI is confident it can succeed without Meta’s help.

FuriosaAI’s Big Plans for the Future

Instead of joining Meta, FuriosaAI is raising $48 million from investors. The financial resources will enable the company to increase its production of RNGD chips. The company produces specialized computation devices biased toward AI problem-solving operations such as question response and problem resolution. The chips from FuriosaAI are tested through LG AI Research and Saudi Aramco. The company will deploy these chips throughout AI systems during the current year.

FuriosaAI employs two distinct processor chips, Warboy being among them. The two chips from FuriosaAI aspire to break into the AI chip market that Nvidia currently controls. Special task focus enables FuriosaAI to establish itself as different from other competitors.

Inside FuriosaAI’s Big Decision

The $48 Million Funding Round

FuriosaAI is in talks with investors to raise $48 million. The company hopes to finish this funding round soon. This money will help speed up the production of its RNGD chips. If successful, FuriosaAI could become a major player in the AI hardware space.

The startup’s chips are already getting attention. LG AI Research says the RNGD chips work well for its AI projects. This partnership is a big win for FuriosaAI as it tries to compete with bigger companies.

Meta’s Struggle to Build Its Own AI Chips

Meta has been working hard to make its own AI chips. It wants to reduce its dependence on Nvidia, whose chips are expensive and sometimes hard to get. Last year, Meta showed off its first custom AI chip. It also plans to spend billions on AI projects, including new data centers.

FuriosaAI
Image Source: Tech in Asia

The acquisition of FuriosaAI would have delivered complete technology solutions to Meta immediately. Since FuriosaAI rejected the acquisition, Meta must proceed with self-developed AI solutions. The refusal of acquisition from Meta will likely delay the company’s AI plans, yet FurnosiaAI is pursuing greater independence in the market.

What This Means for the AI Chip Market

FuriosaAI made an aggressive decision to remain independent. Such a strategic decision demonstrates that even small startup companies believe they have opportunities to contend against technology powerhouses Nvidia and AMD. Special AI tasks are FuriosaAI’s key focus because the company looks to capture clients in search of faster and more affordable solutions.

If they achieve their performance goals, more businesses will duplicate FuriosaAI’s chip strategy. Such a development threatens the current AI hardware strategies that big tech companies like Meta and Google maintain. The current narrative of FuriosaAI involves a small firm placing all its bets on self-sustainability rather than dissolving into a major corporation.

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Emeka Victor
By Emeka Victor
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Emeka Victor is a tech writer and journalist who loves exploring cultures and food. He tells exciting stories about technology and how it affects people. Making tech news simple and interesting for everyone to understand.

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