South Korean AI chip startup FuriosaAI has declined an $800 million acquisition offer from Meta Platforms Inc., choosing instead to remain an independent competitor in the fast-evolving AI hardware space.
Founded in 2017 and led by ex-Samsung and AMD engineer June Paik, FuriosaAI has built a reputation for designing energy-efficient chips that power AI inference—the real-time execution of trained AI models.
The Renegade Chip: A Threat to Nvidia
At the heart of FuriosaAI’s innovation is Renegade (RNGD), its second-generation processor. Manufactured using TSMC’s 5nm process and equipped with SK Hynix’s HBM3 memory, Renegade is engineered to challenge Nvidia’s dominance.
One of its biggest selling points is power efficiency. Operating at just 150 watts, Renegade stands in stark contrast to Nvidia’s H100 GPU, which can consume up to 1,200 watts. This lower power draw makes Renegade particularly attractive for data centers seeking to cut costs while running AI workloads.
Meta’s Push into AI Hardware
Meta’s interest in FuriosaAI reflects Mark Zuckerberg’s bold AI agenda. The company plans to invest $65 billion in AI infrastructure in 2025, with long-term spending expected to rise into the “hundreds of billions.”
Meta has already developed in-house AI inference chips, introduced in 2023 and improved in 2024, primarily used for powering algorithms across Facebook and Instagram.
Buying FuriosaAI would have enhanced Meta’s chip development and helped reduce its reliance on Nvidia, whose GPUs are expensive and frequently in short supply.
Why FuriosaAI Said No
According to insiders, acquisition talks started in early 2025 but collapsed due to disagreements on post-acquisition strategy and organizational structure, not the valuation.
FuriosaAI, which has about 150 employees, including a Silicon Valley-based team of 15, is now advancing independently. The company is nearing completion of an oversubscribed Series C funding round, expected to close within weeks.
It is also distributing chip samples to major clients like LG AI Research and Saudi Aramco, among a dozen early-stage partners evaluating the Renegade chip.
A commercial launch is expected later this year, with the long-term aim of filing for an IPO.
Market Response and Industry Impact
Despite the confidence in FuriosaAI’s future, the news rattled some investors. Shares in DSC Investment Inc., a key backer of the startup, dropped more than 16% following the rejection, after having surged on rumors of the Meta deal.
Still, the move signals FuriosaAI’s intent to disrupt the AI chip hierarchy, long dominated by Nvidia. As AI adoption grows across industries, the company’s energy-efficient design could prove to be a game-changer.
FuriosaAI’s bold decision to remain independent may just redefine the future of AI semiconductors in Asia—and beyond.
