FuriosaAI Catches Interest Amid Potential Meta Takeover

FuriosaAI, a South Korean startup specializing in artificial intelligence (AI) chips, has garnered significant market interest after a report suggested that Meta Platforms, a leading technology firm in the United States, is considering acquiring the company. This move is seen as part of Meta's strategy to reduce its dependence on Nvidia's costly AI processors.

According to a report by Forbes, which cited unnamed sources, discussions between Meta and FuriosaAI could wrap up soon, potentially within the month. However, FuriosaAI has not provided any official comments regarding the report.

FuriosaAI is a fabless company that focuses on creating data center accelerators specifically designed for AI inference. In August of the previous year, the company unveiled its new RNGD chip, claiming that it offers both cost and energy efficiency advantages over similar products from Nvidia.

Forbes has pointed out that a potential acquisition could strengthen Meta's efforts to produce in-house chips. These moves are especially critical as there is a growing shortage of Nvidia accelerators and an increasing demand for alternative options.

Recently, Meta introduced its own AI chip known as MTIA. However, the company is still in the early process of achieving full independence from Nvidia. Recently, Meta's CEO, Mark Zuckerberg, mentioned that the company plans to spend up to $65 billion by 2025 to enhance its data center infrastructure. Furthermore, Meta aims to deploy 1.3 million graphics processing units (GPUs) by the end of this year, indicating a high demand for AI processors.

FuriosaAI's RNGD chip is expected to attract Meta's attention primarily due to its pricing and efficiency. The RNGD chip operates at a thermal design power of 150 watts, a stark contrast to cutting-edge GPUs that may use up to 1,200 watts. Although FuriosaAI has not disclosed the exact price of the RNGD chip, it’s estimated by industry insiders to be around $10,000 per unit, compared to roughly $40,000 for Nvidia's H100 model.

Following the news of the potential acquisition, shares of FuriosaAI’s investors soared in the Korean stock market. Both DSC Investment and TS Investment reached the maximum limit of a 30 percent increase on the tech-heavy Kosdaq on Wednesday.

FuriosaAI, Meta, Acquisition