Meta Eyes Acquisition of FuriosaAI to Boost AI Hardware, Challenge Nvidia Dominance

February 12, 2025
Meta Eyes Acquisition of FuriosaAI to Boost AI Hardware, Challenge Nvidia Dominance
  • Meta is reportedly in discussions to acquire South Korean AI chip startup FuriosaAI, with the deal potentially closing soon.

  • This acquisition is part of Meta's strategy to enhance its AI hardware capabilities and reduce reliance on suppliers like Nvidia.

  • CEO Mark Zuckerberg has announced plans to invest up to $65 billion in AI infrastructure this year, focusing on new data centers and technologies.

  • FuriosaAI, founded in 2017 by former Samsung and AMD engineer Paik June, specializes in AI inference chips and has developed the RNGD chip, optimized for AI models and more power-efficient than Nvidia's offerings.

  • The startup has raised approximately $115 million in funding from investors, including Naver and DSC Investment, to support its development efforts.

  • FuriosaAI plans to begin mass production of its RNGD chip at Taiwan Semiconductor Manufacturing in 2025.

  • Meta and Microsoft are both facing challenges in producing AI chips but are committed to significant investments in AI infrastructure, with Microsoft budgeting $80 billion.

  • Meta's previous attempt to roll out in-house chips was scrapped due to unmet targets, leading to a reliance on Nvidia GPUs.

  • In addition to the acquisition, Meta is collaborating with Broadcom to create its own family of AI chips known as the Meta Training and Inference Accelerator.

  • While neither company has commented on the acquisition talks, finalizing the deal could reshape the AI chip landscape and intensify competition among tech giants.

  • FuriosaAI is recognized as a rare semiconductor maker in South Korea, contributing to the country's growing investments in AI.

  • FuriosaAI's RNGD chip offers competitive performance while significantly reducing energy consumption and overall system costs compared to Nvidia's H100.

Summary based on 8 sources


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