South Korean AI chip startup FuriosaAI has rejected an $800 million acquisition offer from Meta Platforms Inc., choosing instead to continue operating as an independent company, according to sources familiar with the matter. Meta had been in talks to acquire the Seoul-based company since early 2024, as part of its aggressive push to expand AI infrastructure and compete with rivals like OpenAI, Google, and emerging players like China's DeepSeek.

Founded in 2017, FuriosaAI is led by June Paik, a veteran from Samsung Electronics and AMD. The company specializes in AI inference semiconductors, aiming to challenge industry leader Nvidia, alongside rising competitors like Groq, SambaNova Systems, and Cerebras Systems. Its flagship second-generation processor, RNGD (Renegade), is built on TSMC's 5-nanometer process and uses SK Hynix's HBM3 memory chips — a configuration designed for high-performance AI workloads.

Despite the high-profile rejection, FuriosaAI faces mounting financial pressure. The company has raised 170 billion won ($127 million) to date but continues to grapple with the steep costs of AI chip development and production. It's currently pursuing a 60 billion won ($45 million) Series D funding round, backed by the Korea Development Bank, to secure fresh capital for scaling up production. Industry experts note that FuriosaAI lags behind local competitors like Rebellions and DeepX, which have received significant private and government investment.

Meta, meanwhile, remains focused on strengthening its AI capabilities. CEO Mark Zuckerberg announced in January that the company would spend $65 billion this year on AI infrastructure, including data center expansion and workforce growth. He later told investors that Meta's total AI infrastructure investment could reach hundreds of billions of dollars over time. The company has also developed custom AI chips to power ad ranking and recommendations across Facebook and Instagram, releasing its first inference chip in 2023, followed by an upgraded version last year.

FuriosaAI, valued at approximately 800 billion won ($600 million), plans to continue developing its chip technology and push toward mass production. The company is providing samples of its RNGD chips to customers, including LG AI Research (the AI arm of LG Group) and Saudi Aramco, as part of a broader pilot program involving more than a dozen potential clients. FuriosaAI also maintains a Silicon Valley office with 15 employees to support its international ambitions.

The startup is expected to complete an extended Series C funding round within the next month — reportedly exceeding its original target — and is positioning itself for a future IPO. As the AI chip race heats up, FuriosaAI's decision to go it alone could either cement its status as a rising powerhouse or leave it struggling to keep pace in an increasingly competitive market.