FuriosaAI Rejects $800 Million Acquisition Offer from Meta, Reports

3 weeks ago 15

Published on March 24, 2025
In AI News

Earlier this year, it was also reported that OpenAI is also building its custom chips.

Seoul-based AI chip startup FuriosaAI has turned down an $800 million takeover bid from Meta, according to details from a local daily. The negotiations between the two companies fell apart over disagreements around post-acquisition strategy and organisational structure, not the price.

Founded in 2017, FuriosaAI developed RNGD, an AI chip optimised for Llama 2 and Llama 3. The chip is said to consume less power than NVIDIA’s H100 GPUs.

FuriosaAI has raised $115 million from investors, including Naver and DSC Investment. CEO June Paik, formerly of Samsung and AMD, holds an 18.4% stake.

This acquisition intended to reduce Meta’s reliance on NVIDIA for AI chips. Last year, the tech giant introduced its custom chips and announced plans to spend up to $65 billion on AI initiatives in 2025.

Earlier this year, it was reported that OpenAI is also building its custom chips.

The company plans to finalise the design soon and send it to TSMC for production, with mass production expected in 2026. A team of 40 engineers, led by former Google employee Richard Ho, is developing the chip in partnership with Broadcom. The chip will be used to train AI models and improve over time.

Tech giants Microsoft and Meta have faced challenges in producing AI chips. OpenAI’s move aligns with industry efforts to reduce dependence on NVIDIA, which controls 80% of the AI chip market. Microsoft and Meta plan to invest $80 billion and $60 billion in AI infrastructure next year, respectively.

The chip will use 3-nm technology with features similar to NVIDIA’s, including fast memory and networking.

📣 Want to advertise in AIM? Book here

Aditi Suresh

I hold a degree in political science, and am interested in how AI and online culture intersect. I can be reached at [email protected]

Association of Data Scientists

GenAI Corporate Training Programs

Our Upcoming Conference

India's Biggest Conference on AI Startups

April 25, 2025 | 📍 Hotel Radisson Blu, Bengaluru

Download the easiest way to
stay informed

How AI is Making Developers 10X Faster and Productive

Vidyashree Srinivas

With Deva.ai, SmartQ is not only keeping pace with AI innovation but also setting new industry standards by empowering every developer to become a 10x smarter engineer, enhancing productivity, creativity,

Subscribe to The Belamy: Our Weekly Newsletter

Biggest AI stories, delivered to your inbox every week.

Happy Llama 2025

AI Startups Conference.April 25, 2025 | 📍 Hotel Radisson Blu, Bengaluru, India

Data Engineering Summit 2025

May 15 - 16, 2025 | 📍 Hotel Radisson Blu, Bengaluru

MachineCon GCC Summit 2025

June 20 to 22, 2025 | 📍 ITC Grand, Goa

Cypher India 2025

Sep 17 to 19, 2025 | 📍KTPO, Whitefield, Bengaluru, India

MLDS 2026

India's Biggest Developers Summit | 📍Nimhans Convention Center, Bengaluru

Rising 2026

India's Biggest Summit on Women in Tech & AI 📍 Bengaluru

World's Biggest Media & Analyst firm specializing in AI

Advertise with us

AIM publishes every day, and we believe in quality over quantity, honesty over spin. We offer a wide variety of branding and targeting options to make it easy for you to propagate your brand.

Branded Content

AIM Brand Solutions, a marketing division within AIM, specializes in creating diverse content such as documentaries, public artworks, podcasts, videos, articles, and more to effectively tell compelling stories.

Corporate Upskilling

ADaSci Corporate training program on Generative AI provides a unique opportunity to empower, retain and advance your talent

Hackathons

With MachineHack you can not only find qualified developers with hiring challenges but can also engage the developer community and your internal workforce by hosting hackathons.

Talent Assessment

Conduct Customized Online Assessments on our Powerful Cloud-based Platform, Secured with Best-in-class Proctoring

Research & Advisory

AIM Research produces a series of annual reports on AI & Data Science covering every aspect of the industry. Request Customised Reports & AIM Surveys for a study on topics of your interest.

Conferences & Events

Immerse yourself in AI and business conferences tailored to your role, designed to elevate your performance and empower you to accomplish your organization’s vital objectives.