Korean AI chip start-up declines Meta's $800M acquisition bid
What's the story
FuriosaAI, a South Korean semiconductor start-up focused on artificial intelligence (AI) technology, has turned down an $800 million acquisition offer from Meta Platforms.
The company intends to pursue its independent growth path, according to Bloomberg.
Meta has been in talks to acquire Seoul-based FuriosaAI since early this year, as per the report.
Founded in April 2017 by semiconductor expert Baek Jun-ho, the company took the decision internally.
Company profile
FuriosaAI: A rising player in AI semiconductor market
Founded just eight years ago, FuriosaAI has rapidly emerged as a major player in the AI semiconductor space.
The company is headed by June Paik, a former employee of Samsung Electronics Co. and Advanced Micro Devices Inc.
Its second-generation processor, RNGD (pronounced "Renegade"), is particularly aimed at taking on products from industry giants NVIDIA, Groq, SambaNova Systems, and Cerebras Systems.
Investment focus
Meta's AI investment strategy and chip development
As part of its strategy to take on the likes of OpenAI and Google, Meta is making a massive investment in AI infrastructure.
CEO Mark Zuckerberg recently announced a $65 billion investment plan for this year, including the construction of a massive data center and expansion of Meta's AI workforce.
The Menlo Park-based company has also begun building its own chips for AI workloads, including powering ad ranking and recommendations on Facebook and Instagram.
Expansion
FuriosaAI's future plans and partnerships
Before going for an IPO, FuriosaAI plans to raise capital. The company is expected to close a Series C funding round in a month, exceeding its target amount.
FuriosaAI is currently offering samples of its chips to customers like LG AI Research, Saudi Aramco, etc.
The company's latest chip, RNGD, utilizes HBM3 memory chips provided by SK Hynix Inc.