Introduction to FuriosaAI’s Decision

FuriosaAI, a South Korean startup known for producing chips designed for AI applications, has reportedly declined an acquisition offer of $800 million from Meta. Instead, the company has chosen to concentrate on the development and production of its AI chips, as stated in a local media report.

Reasons Behind the Decision

The primary reasons for the breakdown in negotiations were disagreements over the post-acquisition business strategy and organizational structure, rather than any issues related to the price, according to the report.

Background on Meta’s AI Initiatives

Alongside other tech companies involved in building large language models (LLMs) for various AI applications, Meta has been making efforts to reduce its dependence on Nvidia for chips that are specifically designed for training and building LLMs. Last year, the tech giant unveiled its custom AI chips, and in January, it announced plans to invest up to $65 billion this year in support of its AI initiatives.

Response from Companies

FuriosaAI did not respond to a request for comment. Similarly, Meta did not immediately respond to a request for comment outside of regular business hours.

Future Plans for FuriosaAI

Meanwhile, FuriosaAI is reportedly in discussions with investors to secure approximately $48 million (KRW 70 billion) in funding, with the goal of completing this fundraising round by the end of the month.

Background on FuriosaAI

Founded in 2017 by June Paik, a former employee of Samsung Electronics and AMD, FuriosaAI has developed two AI chips, known as Warboy and Renegade (RNGD), designed to compete with the likes of Nvidia and AMD.

Development and Plans for AI Chips

The startup has announced the completion of testing for the RNGD chips, which are particularly suited for reasoning models, in partnership with LG AI Research and Aramco. LG AI Research is reportedly planning to utilize RNGD chips in its AI infrastructure. FuriosaAI plans to launch these chips later this year.