FuriosaAI Rejects $800M Meta Acquisition Offer, Focuses on AI Chip Development

South Korean AI chip startup FuriosaAI has reportedly turned down an $800 million acquisition offer from Meta, choosing instead to continue developing its own AI chips, according to local media reports.

Why Did FuriosaAI Reject Meta?

• The breakdown in negotiations wasn't about price, but disagreements over business strategy and organizational structure.

• Meta, like other AI giants, is seeking alternatives to Nvidia chips to power its large language models (LLMs).

• FuriosaAI, however, appears determined to remain independent as it scales its chip production.

FuriosaAI’s Plans Moving Forward

• The startup is in talks to raise $48 million (KRW 70 billion) from investors, aiming to complete the funding round this month.

• Its latest AI chip, Renegade (RNGD), designed for reasoning models, has been tested in partnership with LG AI Research and Aramco.

• LG AI Research is expected to integrate RNGD chips into its AI infrastructure, with a full launch planned later this year.

Meta’s AI Hardware Push

• In an effort to reduce its dependence on Nvidia, Meta has been developing custom AI chips and plans to invest up to $65 billion this year in AI infrastructure.

• The rejected FuriosaAI deal highlights Meta’s ongoing struggle to secure alternative AI hardware suppliers.