FuriosaAI, a South Korean startup that makes chips for AI functions, has rejected an $800 million acquisition provide from Meta, opting as an alternative to give attention to growing and producing its AI chips, in line with a neighborhood media report.
Disagreements over post-acquisition enterprise technique and organizational construction, moderately than worth points, brought on the negotiations to interrupt down, the report mentioned.
Along with different tech firms constructing massive language fashions (LLMs) for numerous AI functions, Meta has been attempting to scale back its reliance on Nvidia for chips which might be specialised for coaching and constructing LLMs. The tech big final yr unveiled its customized AI chips, and in January mentioned it could make investments as much as $65 billion this yr to assist its AI initiatives.
FuriosaAI didn’t reply to a request for remark. Meta didn’t instantly reply to a request for remark outdoors common enterprise hours.
Meanwhile, FuriosaAI is reportedly in talks with buyers to boost roughly $48 million (KRW 70 billion), and goals to finish the fundraise this month.
Founded in 2017 by June Paik, who beforehand labored at Samsung Electronics and AMD, FuriosaAI has developed two AI chips, known as Warboy and Renegade (RNGD), to tackle the likes of Nvidia and AMD.
The startup has mentioned it has accomplished testing the RNGD chips, that are mentioned to be greatest suited to reasoning fashions, in partnership with LG AI Research and Aramco. LG AI Research reportedly plans to use RNGD chips in its AI infrastructure, and the startup plans to launch the chips later this yr.
