South Korean AI chip startup FuriosaAI has reportedly declined an $800 million acquisition offer from Meta, choosing instead to continue developing its own AI chip technology. According to local media, the deal collapsed not due to price disagreements but conflicting business strategies and organizational concerns.
Meta has been working to reduce its reliance on Nvidia by investing in its own AI chip initiatives, committing up to $65 billion this year for AI infrastructure. The company introduced its custom AI chips last year as part of this effort.
FuriosaAI, founded in 2017 by former Samsung and AMD engineer June Paik, has developed two AI chips—Warboy and Renegade (RNGD)—aimed at competing with Nvidia and AMD. The company has completed testing of the RNGD chips in collaboration with LG AI Research and Aramco, with plans to launch them later this year. LG AI Research is expected to integrate the chips into its AI infrastructure.
In the meantime, FuriosaAI is in discussions to secure approximately $48 million in new funding, targeting completion by the end of the month. Neither FuriosaAI nor Meta have responded to requests for comment on the failed acquisition.
