This article was displayed on March 26, 2025, at 3:41 p.m. on the ChosunBiz MoneyMove site.
The domestic artificial intelligence (AI) semiconductor design startup FuriosaAI has entered the final stage of securing new investment worth 70 billion won. The funds already secured exceed 60 billion won. After struggling to raise funds last year due to investor indifference and experiencing liquidity crisis rumors, the situation has completely changed this year.
In particular, it has been confirmed that institutional investors, including venture capital (VC), are successively confirming investments. The acquisition attempt by global big tech firm Meta has been evaluated as a means to re-evaluate the technological capabilities of FuriosaAI. FuriosaAI chose independent growth instead of accepting the sale proposal.
According to the VC industry on the 26th, FuriosaAI has entered the final stage of the Series D funding round worth 70 billion won that resumed earlier this year. It is understood that Korea Development Bank, IMM Investment, Korea Investment Partners, and Eugene Securities have confirmed their investments, raising more than 60 billion won.
If FuriosaAI completes its financing, it is expected to ease its liquidity issues. Last July, FuriosaAI sought to raise 80 billion won with an estimated corporate value of about 800 billion won, but it struggled to raise the target funds due to investor indifference.
Market rumors of a crisis had circulated. This was due to the fact that FuriosaAI only secured 80 billion won out of the 160 billion won planned for the Series C funding round in 2023. FuriosaAI had aimed to secure an additional 80 billion won by the end of that year after the first closing in July, but was unable to finalize the funds.
The collapse of semiconductor company FADU led to delays in VC investment executions, and above all, there were questions raised about the technological capabilities of the second-generation AI semiconductor chip "Renegade" released by FuriosaAI last August. Evaluations emerged that FuriosaAI would not have sufficient funds to continue its technology development.
Meta's pursuit of a merger and acquisition with FuriosaAI has become a turning point. After experiencing underwhelming performance in its own AI chip development, Meta began negotiations with FuriosaAI earlier this year, having sought to acquire a foreign semiconductor company with established technology.
There have been points raised that the sudden sale rumors may be part of FuriosaAI's strategy for "increasing its valuation" or "facilitating investment attraction," but nonetheless, the market responded. In particular, significant investor interest is reported to have centered on Renegade, which Meta is said to have shown interest in.
Renegade is an AI semiconductor specialized for AI inference tasks, reportedly consuming only about 25% of the power compared to existing GPUs while achieving twice the performance efficiency. It is produced based on TSMC's 5-nanometer process and maximizes computational performance with high-bandwidth memory.
Previously, FuriosaAI chose independent growth when there were efforts to merge with Sapion and Libelium, which gained attention as AI semiconductor design startups last June. It is reported that Sapion had proposed the merger to FuriosaAI first.
FuriosaAI has once again chosen independent growth. It is known to have recently communicated its final refusal to Meta regarding the sale. Instead, the company plans to utilize the new investment of 70 billion won to commence full-scale production of Renegade in the second half of this year.
Currently, the investment attraction for FuriosaAI is being led by Korea Development Bank, which has reportedly confirmed investments close to 30 billion won, nearly half of the total investment attraction target. This is evaluated as part of the policy support due to the rise of AI semiconductors as a national strategic industry.
The fact that FuriosaAI could become an M&A target at any time is also cited as a factor fueling investor interest. In particular, the acquisition price proposed by Meta is said to be $800 million (about 1.2 trillion won), significantly exceeding FuriosaAI's market-valued corporation value of around 800 billion won by about 400 billion won.
A source from a domestic VC noted, "Big tech companies, including Meta, are focusing on developing their own semiconductors to reduce their reliance on Nvidia and lower investment expenses," adding that "there may also be acquisition proposals from other big tech companies, which is also a factor pushing investments."
Meanwhile, FuriosaAI has recognized its AI semiconductor technology, receiving over 167 billion won in investments. DSC Investment, Korea Development Bank, T.S. Investment, Naver D2SF, Quantum Ventures Korea, Korea Omega Investment Finance, Schmitt, and Korea Investment Partners are among its shareholders.