FuriosaAI's Bold Move: Partnering with LG After Turning Down Meta's $800M Offer
Techcrunch17 hours ago
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FuriosaAI's Bold Move: Partnering with LG After Turning Down Meta's $800M Offer

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Summary:

  • FuriosaAI partners with LG AI Research to supply its RNGD AI chip for the EXAONE platform

  • Declined Meta's $800M offer to remain independent and focus on sustainable AI computing

  • RNGD chip delivers 2.25x better inference performance and is more energy-efficient than competitors

  • Targets electronics, finance, telecommunications, and biotechnology sectors

  • Global expansion expected through LG's international partnerships

South Korean AI chip startup FuriosaAI has made headlines by announcing a significant partnership to supply its RNGD AI chip to enterprises utilizing LG AI Research's EXAONE platform. This collaboration marks a pivotal moment for FuriosaAI, especially after the company declined an $800 million acquisition offer from Meta three months prior.

A Strategic Partnership with LG

The partnership focuses on integrating FuriosaAI's RNGD chip with LG's EXAONE 4.0, a next-generation hybrid AI model. This alliance targets key industries such as electronics, finance, telecommunications, and biotechnology, promising to revolutionize AI applications across these sectors.

FuriosaAI's RNGD chip in action

Why FuriosaAI Chose Independence Over Meta

CEO June Paik revealed that the decision to remain independent was driven by a desire to continue their mission of making AI computing more sustainable. Disagreements over post-acquisition strategy and organizational structure—not price—were the deal-breakers with Meta.

Beyond South Korea: Global Ambitions

Paik emphasized that this partnership opens doors to global opportunities, leveraging LG's international customer base. FuriosaAI's RNGD chip, optimized for large language models (LLMs), has already demonstrated 2.25 times better inference performance and greater energy efficiency compared to competitive GPUs.

A Chip Built Exclusively for AI

Unlike general-purpose GPUs, FuriosaAI's RNGD is natively designed for AI computing, offering superior efficiency for a wide range of AI models. This specialization has positioned FuriosaAI as a strong competitor to Nvidia, with LG's endorsement serving as a significant validation.

With a lean team of 15 employees and a clear vision, FuriosaAI is poised to make a lasting impact in the AI hardware space.

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