💥 FuriosaAI Rejects Meta’s $800M Offer, Plans IPO Instead

FuriosaAI, a South Korean AI chipmaker, has rejected Meta’s $800 million acquisition offer and instead set its sights on raising more funding and preparing for an IPO. The decision marks a bold move in the rapidly evolving AI semiconductor sector, as FuriosaAI seeks to challenge Nvidia—the current industry leader.

🔍 Why FuriosaAI Rejected Meta’s Offer

• Independence Over Acquisition: Meta had been negotiating with FuriosaAI since early 2025, but the startup chose autonomy over selling out.
• Long-Term Vision: Sources say FuriosaAI believes in its potential to scale independently, without relying on the backing of a tech giant like Meta.
• Funding Over Sale: Rather than selling, the company is preparing for a major funding round, signaling its confidence in its AI chip technology.

⚡ FuriosaAI’s Chips: A Rival to Nvidia

Founded in 2017, FuriosaAI focuses on designing AI processors for machine learning tasks. Their latest chip, RNGD (“Renegade”), is made using 5-nanometer technology and features HBM3 memory from SK Hynix. This places FuriosaAI in direct competition with Nvidia and other AI chipmakers like Groq, SambaNova Systems, and Cerebras Systems.

• Cutting-Edge Technology: The Renegade chip is designed to take on Nvidia’s AI processors, offering high performance for machine learning.
• Strong Team: The startup is attracting top talent, with engineers coming from big names like Samsung and AMD.

💼 Who’s Backing FuriosaAI?

DSC Investment, a South Korean venture capital firm, is one of the key investors in FuriosaAI. Following the rejection of Meta’s acquisition, DSC’s stock dropped 16%, reflecting uncertainty about the company’s independent path. Despite this, FuriosaAI has already raised $124 million in funding, with strong backing from Samsung for AI chip co-development.

The company is also preparing to close a Series C funding round, expected to exceed its original target, strengthening its position as a major player in AI hardware.

🤖 Meta’s AI Chip Strategy Hits a Snag

Meta had been looking to reduce its dependence on Nvidia’s chips by developing its own AI processors. Meta has already started testing its custom chip for Facebook and Instagram, aiming for broader production if successful.

However, the FuriosaAI rejection underlines a challenge for Meta: AI semiconductor startups are growing more confident in their own capabilities and may be unwilling to sell, even for a substantial sum.

🚀 What’s Next for FuriosaAI?

Rather than sell to Meta, FuriosaAI is shifting its focus to expanding its customer base.

• Key Clients: The startup has provided chip samples to LG AI Research and Saudi Aramco and expects to onboard more clients throughout 2025.
• Scaling Production: With 150 employees (including a small team in Silicon Valley), FuriosaAI is ramping up chip production in preparation for its IPO.

⚙️ TL;DR

• FuriosaAI rejects Meta’s $800M offer and instead aims to raise more funds and pursue an IPO.
• The company’s Renegade AI chips are positioned to compete with Nvidia and other AI startups.
• Backed by DSC Investment and Samsung, FuriosaAI is scaling operations and expanding its client base.
• Meta’s AI chip ambitions are set back, as FuriosaAI opts to go it alone.

FuriosaAI is betting big on its future, choosing independence over acquisition to potentially disrupt the AI semiconductor market—and take on Nvidia.