Meta in Talks to Buy S.Korean AI Chip Startup FuriosaAI

Meta Platforms is reportedly in discussions to acquire FuriosaAI, a South Korean AI chip startup. The deal could potentially be finalized as early as this month.

Meta has been heavily investing in AI infrastructure, including developing its own AI chips like the Meta Training and Inference Accelerator (MTIA) and the latest Next Gen MTIA.

FuriosaAI specializes in developing AI inference chips for data centers and has created its own AI chip, RNGD, which offers three times the performance per watt compared to Nvidia’s advanced AI chip, the H100. The acquisition could help Meta reduce its dependence on Nvidia and enhance its custom chip development efforts.

FuriosaAI RNGD chip

This acquisition could significantly boost Meta's custom chip development efforts, especially amid the ongoing Nvidia chip shortage and increasing demand for alternative solutions.

Founded by June Paik, a former engineer at Samsung Electronics and AMD, FuriosaAI benefits from the expertise and experience of its leadership. FuriosaAI specializes in developing AI inference chips for data centers, and their chips are known for their high performance and energy efficiency.

Compared to other AI chip companies like Nvidia, Cerebras Systems, and Intel, FuriosaAI's focus on efficiency and inference, along with its strategic partnerships and strong backing, positions it as a competitive player in the AI chip market.

The South Korean startup has raised significant funding from notable investors like Naver, Korea Development Bank, and DSC Investment. This financial backing supports its research and development efforts.

FuriosaAI has also collaborated with Taiwanese custom chip maker Global Unichip Corp. and SK Hynix for high-performance memory chips.

Meta aims to develop custom AI chips, like the Meta Training and Inference Accelerator (MTIA), to efficiently handle AI workloads, particularly for ranking and recommendation systems. These chips are designed to improve performance and energy efficiency. These chips are designed to improve performance and energy efficiency.

Meta's investment in AI technology is a strategic move to stay ahead of competitors, anticipate market trends, and deliver more personalized and engaging experiences to users.

Meta's investment in AI technology is a strategic move to stay ahead of competitors, anticipate market trends, and deliver more personalized and engaging experiences to users.

In the last two years, Meta Platforms has made several acquisitions to bolster its AI and virtual reality capabilities.

Within Unlimited was Acquired by Meta in February, 2023, Within Unlimited specializes in virtual reality content, including the popular fitness app Supernatural. In 2022, Meta acquired Luminous to enhance Meta's AI capabilities, particularly in computer vision and augmented reality.