This strategic choice reflects FuriosaAI's confidence in its business model and its commitment to long-term growth in the semiconductor industry.

FuriosaAI, a South Korean AI chip startup founded in 2017 by June Paik, has rejected an $800 million acquisition offer from Meta to maintain its independence and focus on innovation in chip development.

The company's leadership believes that joining Meta could jeopardize its long-term vision and operational autonomy, prompting the decision to remain independent.

Currently, the startup employs around 150 people and is providing chip samples to clients such as LG AI Research and Saudi Aramco.

FuriosaAI has developed two AI chips, Warboy and Renegade (RNGD), to compete with industry giants Nvidia and AMD.

Following the news of the rejected acquisition, shares of DSC Investment Inc., a major investor in FuriosaAI, fell over 16% after previously rising due to acquisition speculation.

FuriosaAI's self-developed RNGD chip boasts a thermal design power of 150W, delivering three times better performance per watt compared to Nvidia's H100 GPUs.

The startup is currently raising approximately $48 million to support its technology development efforts and accelerate the commercialization of its Renegade chip.

Managing Director Jeong Young-beom has expressed a desire for investment while keeping all options open for the company's future, despite funding challenges in South Korea.

FuriosaAI's decision to prioritize technological independence may encourage the rise of additional homegrown competitors in the AI hardware sector, particularly in Asia.

The startup's mission focuses on building AI chips that can efficiently run advanced models, contributing to sustainable AI computing.

Meta's interest in acquiring FuriosaAI was part of its strategy to enhance its AI capabilities and reduce dependence on Nvidia for AI chips.