FuriosaAI Rejected Meta鈥檚 $800 Million Acquisition Offer Amid Negotiation Breakdown
25 March 2025 路 Uncategorized 路
Source: 路 https://technews.tw/2025/03/25/furiosaai-reportedly-turns-down-800m-acquisition-offer-from-meta/
According to local media reports from Korea, the semiconductor startup FuriosaAI has rejected Meta's $800 million acquisition offer and will instead focus on developing its own AI chips.
Meta had proposed an acquisition price of approximately $800 million (around 12 trillion Korean won), which was about four times more than market estimates for the company, valued at around 3 trillion Korean won.
'Since last October, Meta has been monitoring several semiconductor companies in America and Israel before settling on FuriosaAI as its acquisition target,' a source familiar with Furiosa AI told local media. 'From what I understand, negotiations broke down not due to price but because of disagreements over business direction and organizational structure after an acquisition.'
Neither FuriosaAI nor Meta have made any official statements regarding these developments.
Meanwhile, FuriosaAI has received a Letter of Intent for 30 billion Korean won from the Korea Development Bank (KDB) and plans to raise around 70 billion more in the next three or four weeks.
Like other tech giants, Meta is working hard to reduce its reliance on NVIDIA GPUs. Last year it announced that they were developing their own AI chips with a capital expenditure of up to $65 billion this year aimed at expanding their artificial intelligence infrastructure.
FuriosaAI was founded in 2017 by June Paik, formerly an engineer from Samsung Electronics and AMD. The company has already developed two AI chip models鈥擶arboy and Renegade (RNGD)鈥攁iming to challenge the market positions of NVIDIA and AMD.
The RNGD model completed testing with LG AI Research and Saudi Aramco earlier this year and is particularly suitable for inference models. LG plans to incorporate these chips into their AI infrastructure, while FuriosaAI expects a formal release later in 2023.
(Lead image source: Shutterstock)
Meta had proposed an acquisition price of approximately $800 million (around 12 trillion Korean won), which was about four times more than market estimates for the company, valued at around 3 trillion Korean won.
'Since last October, Meta has been monitoring several semiconductor companies in America and Israel before settling on FuriosaAI as its acquisition target,' a source familiar with Furiosa AI told local media. 'From what I understand, negotiations broke down not due to price but because of disagreements over business direction and organizational structure after an acquisition.'
Neither FuriosaAI nor Meta have made any official statements regarding these developments.
Meanwhile, FuriosaAI has received a Letter of Intent for 30 billion Korean won from the Korea Development Bank (KDB) and plans to raise around 70 billion more in the next three or four weeks.
Like other tech giants, Meta is working hard to reduce its reliance on NVIDIA GPUs. Last year it announced that they were developing their own AI chips with a capital expenditure of up to $65 billion this year aimed at expanding their artificial intelligence infrastructure.
FuriosaAI was founded in 2017 by June Paik, formerly an engineer from Samsung Electronics and AMD. The company has already developed two AI chip models鈥擶arboy and Renegade (RNGD)鈥攁iming to challenge the market positions of NVIDIA and AMD.
The RNGD model completed testing with LG AI Research and Saudi Aramco earlier this year and is particularly suitable for inference models. LG plans to incorporate these chips into their AI infrastructure, while FuriosaAI expects a formal release later in 2023.
(Lead image source: Shutterstock)