FuriosaAI Rejects Meta’s $800M Bid, Pursues Independence

FuriosaAI, a Seoul-based AI chip startup, has reportedly turned down an $800 million acquisition offer from Meta, opting to remain independent and raise capital instead. The move signals confidence in its own trajectory as the company eyes a future IPO and competes with major players like Nvidia, Groq, and Cerebras.

The offer, which had been under discussion since early 2025, was quietly declined, according to a person familiar with the matter. Both FuriosaAI and Meta declined to comment on the potential deal.

A Strategic Holdout

Founded eight years ago, FuriosaAI is led by CEO June Paik, a semiconductor veteran with experience at Samsung Electronics and AMD. The company specializes in AI inferencing chips, used to power real-time AI services. Its latest processor, RNGD (pronounced "Renegade"), is built to rival top-tier solutions from Nvidia and other emerging hardware companies like SambaNova, Cerebras, and Groq.

RNGD is manufactured using TSMC’s 5-nanometer process and utilizes HBM3 memory from SK Hynix, placing it at the cutting edge of AI hardware design.

FuriosaAI currently employs around 150 people, including a small U.S. presence with 15 staff in Silicon Valley.

Big Tech Attention, Big Market Moves

FuriosaAI is one of the few Asian chip startups to draw sustained acquisition interest from Meta Platforms, which has been aggressively expanding its AI infrastructure. Meta has invested heavily in custom AI chips for internal use—particularly for ad delivery and content recommendations across Facebook and Instagram—and has signaled plans to spend up to $65 billion this year on data centers and AI talent.

Just a week after announcing that investment figure, Mark Zuckerberg told investors the company may eventually spend “hundreds of billions” on AI infrastructure over time.

The startup’s decision to reject the offer shook South Korean markets: shares of major backer DSC Investment Inc. fell over 16%, reversing earlier gains fueled by buyout rumors.

Meanwhile, Meta shares rose 3.4% amid a broader market rally.

Furiosa’s Road Ahead

Rather than sell, FuriosaAI is preparing to raise additional capital and move toward a future IPO. According to sources, the company expects to close an extended Series C round within a month, already on pace to exceed its original fundraising target.

Furiosa is currently sampling its RNGD chip with a dozen potential customers in the first half of the year. Notably, its client list includes LG AI Research and Saudi Aramco, signaling global commercial interest.

What This Means

FuriosaAI’s rejection of Meta’s $800 million bid highlights the growing confidence and ambition of next-generation chip startups—especially those outside of Silicon Valley. With a high-performance product, a solid customer pipeline, and strong investor backing, the company appears poised to become a key player in the global AI hardware race.

For Meta, the failed acquisition is a reminder that talent and innovation in the AI chip sector are increasingly decentralized, and competition for partnerships is intensifying. As AI infrastructure spending soars, companies like Furiosa may hold more leverage than ever before.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.