Furiosa AI rejects Meta offer while seeking key investments in chip development

Domestic artificial intelligence (AI) semiconductor startup FuriosaAI rejected a takeover proposal from Meta.

On the 24th, according to the semiconductor industry, Baek Joon-ho, the CEO of FuriosaAI, notified the company that there would be no takeover negotiations with Meta that day. It is reported that they also conveyed their refusal of the sale proposal to Meta.

FuriosaAI is understood to be planning to continue developing and mass-producing its own AI chips, such as Renegade, instead of selling its management rights abroad. The corporate value of FuriosaAI is estimated to be around 800 billion won, and Meta's proposed acquisition price is said to be $800 million (1.2 trillion won).

However, analysis suggests that attracting investment to continue the business initiatives will remain a challenge. So far, FuriosaAI has secured investments amounting to 170 billion won. However, it is known to be facing financial difficulties in operations as significant funds are being poured into AI chip development and production. Currently, FuriosaAI is reported to be pushing for a series D funding round of 60 billion won from the Industrial Bank of Korea and others.

An industry insider noted, "Unlike companies like Rebellion and DeepX, which have attracted large-scale investments and are conducting their businesses stably, it is true that FuriosaAI has struggled to secure funds for mass-producing its own AI chips. Given that funding is necessary for chip production through foundries before securing clients, FuriosaAI must focus on attracting funds to sustain its business."