Tuesday, April 1, 2025

Meta Pursues FuriosaAI Acquisition to Strengthen AI Chip Capabilities

AFP·Yonhap
AFP·Yonhap

According to a report from Forbes on Tuesday citing sources, Meta Platforms is reportedly in discussions to acquire FuriosaAI, a South Korean AI semiconductor design startup.

Sources indicate that the acquisition discussions could conclude as early as this month.

FuriosaAI specializes in developing semiconductors optimized for AI inference operations used in data center servers. The company operates as a fabless firm, focusing solely on chip design without its own production facilities.

Founded in 2017, FuriosaAI unveiled its first AI semiconductor, Warboy, in 2021 and announced its next-generation AI semiconductor, RNGD, last August.

The company was established by CEO Baek Jun Ho, who has a Samsung Electronics and AMD background.

According to sources, Meta is not the only company pursuing the acquisition of FuriosaAI.

Sources added that Meta is just one of several companies expressing interest in the acquisition.

Meta plans to invest between $60 billion and $65 billion in AI this year and will likely continue developing its own AI semiconductors alongside potential acquisitions.

Meta continues to purchase AI semiconductors from Nvidia and is also interested in creating custom semiconductors optimized for its own AI needs.

The company is developing its own AI semiconductors in collaboration with Broadcom, a custom semiconductor manufacturer.

Recently, investors recognized Meta’s efforts. It avoided the fallout from the R1 shock caused by the Chinese AI startup DeepSeek, which impacted the AI theme on the New York Stock Exchange on January 27.

Meta’s stock price continues to rise amid expectations that open-source formats will become the trend. Since January 17, the stock has increased for 17 consecutive trading days, setting a record for 14 consecutive days of all-time highs.

On the same day, Meta recorded a price of $721.12, up $3.72 (0.52%) from the previous close.

Meanwhile, FuriosaAI has raised approximately $115 million to date.

Naver and the Korean investment firm DSD Investment participated in the initial funding.

Baek reportedly holds an 18.4% stake in the company.

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