This Korean chip startup turned down a takeover offer from Meta
Choosing independence over a quick payday.
Startups often chase big buyouts, but an AI chip startup in South Korea wants to flip that script. FuriosaAI, based in Seoul, and founded by former Samsung and AMD engineers just turned down a crazy $800 million buy-out offer from Meta.
Sources close to the negotiations say the rejection wasn’t about money but likely about control. FuriosaAI disagreed with Meta's business direction and organizational structure. So, rather than risk being absorbed and reshaped to fit Meta’s vision, FuriosaAI chose to remain independent.
As we know, Meta has been aggressively expanding its AI infrastructure, pouring billions into data centers, in-house AI development, and custom chips needed to train LLMs in a bid to reduce its reliance on Nvidia.
The company is competing against OpenAI, Google, and other players to dominate AI technology. Acquiring FuriosaAI would have given Meta a strategic advantage in AI chip design, aiding it in building more efficient AI models, including its flagship, Llama AI.
But as it turns out, FuriosaAI has bigger plans to compete with industry giants like Nvidia rather than just becoming another cog in Meta’s AI machine.
Louis Eriakha
With its second-generation AI chip, RNGD, FuriosaAI is positioning itself as a serious challenger to Nvidia. The chip, built on TSMC’s 5-nanometer process and paired with HBM3 memory from SK Hynix, has been turning heads in the industry–with clients like LG AI Research and Saudi Aramco already testing the chips.
FuriosaAI is also preparing for bigger things. The startup is about closing an extended Series Round of $48 million, and this could be a stepping stone to an eventual IPO.
Overall, industry experts believe FuriosaAI’s decision shows confidence in its technology and market potential. Rather than selling out early, the company is betting on itself to become a global AI semiconductor powerhouse. It’s a bold bet, and with the AI boom in full swing, it might just pay off.
