AI chip startup FuriosaAI reportedly turns down $800M acquisition offer from Meta

FuriosaAI, a South Korean startup that makes chips for AI purposes, has rejected an $800 million acquisition supply from Meta, opting as an alternative to concentrate on creating and producing its AI chips, in line with a neighborhood media report.

Disagreements over post-acquisition enterprise technique and organizational construction, quite than worth points, triggered the negotiations to interrupt down, the report mentioned.

Together with different tech corporations constructing giant language fashions (LLMs) for numerous AI purposes, Meta has been attempting to cut back its reliance on Nvidia for chips which are specialised for coaching and constructing LLMs. The tech large final yr unveiled its customized AI chips, and in January mentioned it might make investments as much as $65 billion this yr to assist its AI initiatives.

FuriosaAI didn’t reply to a request for remark. Meta didn’t instantly reply to a request for remark exterior common enterprise hours.

In the meantime, FuriosaAI is reportedly in talks with buyers to boost roughly $48 million (KRW 70 billion), and goals to finish the fundraise this month.

Based in 2017 by June Paik, who beforehand labored at Samsung Electronics and AMD, FuriosaAI has developed two AI chips, referred to as Warboy and Renegade (RNGD), to tackle the likes of Nvidia and AMD.

The startup has mentioned it has accomplished testing the RNGD chips, that are mentioned to be greatest suited to reasoning fashions, in partnership with LG AI Analysis and Aramco. LG AI Analysis reportedly plans to use RNGD chips in its AI infrastructure, and the startup plans to launch the chips later this yr.