South Korea’s FuriosaAI rejects Meta’s $800M buyout bid

AI chip startup opts for independence, seeks fresh funding

FuriosaAI logo./FuriosaAI

South Korean artificial intelligence (AI) chip startup FuriosaAI has rejected an $800 million takeover bid from Meta, opting to continue developing its own AI chips, sources familiar with the matter said.

Founder and CEO June Paik informed employees on March 24 that the company would not enter acquisition talks with Meta, according to an internal announcement. FuriosaAI has also formally declined the offer, industry sources said.

The startup, valued at an estimated 800 billion won ($600 million), plans to push ahead with AI chip development and mass production, including its flagship RNGD processor.

Despite turning down the buyout, FuriosaAI faces mounting financial pressure as it works to sustain operations. The company has raised about 170 billion won in funding so far but is struggling with the high costs of AI chip development and production. It is currently seeking to raise 60 billion won ($45 million) through a Series D funding round, backed by Korea Development Bank, according to industry sources.

A semiconductor industry official said FuriosaAI has faced challenges securing capital for large-scale chip production, unlike rivals such as Rebellions and DeepX, which have drawn significant investment, including government backing.

“FuriosaAI must secure fresh capital to fund chip production before it can scale up and attract major customers. Without it, survival will be an uphill battle,” the official said.

[Chun Byung-soo]

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