Meta is in talks to accumulate FuriosaAI, a South Korean AI chip startup, to strengthen its customized chip efforts amid an NVIDIA GPU scarcity. In accordance with experiences, the deal may very well be finalised this month, however different consumers are additionally in discussions.
Based in 2017, FuriosaAI developed RNGD, an AI chip optimised for Llama 2 and Llama 3. The chip is claimed to devour much less energy than NVIDIA’s H100 GPUs.
FuriosaAI has raised 170 billion received ($115 million) from buyers, together with Naver and DSC Funding. CEO June Paik, previously of Samsung and AMD, holds an 18.4% stake.
The talks come as South Korean rival Rebellions merged with SK Hynix-backed Sapeon, forming the nation’s first AI chip unicorn.
South Korea is ramping up AI investments, positioning startups like FuriosaAI as key gamers. If Meta proceeds with the acquisition, it may scale back the reliance on NVIDIA’s high-cost GPUs.
In the meantime, even OpenAI is constructing its customized chip.
The corporate plans to finalise the design quickly and ship it to TSMC for manufacturing, with mass manufacturing anticipated in 2026. A workforce of 40 engineers, led by former Google worker Richard Ho, is creating the chip in partnership with Broadcom. The chip will probably be used for coaching AI fashions and improved over time.
Tech giants Microsoft and Meta have confronted challenges in producing AI chips. OpenAI’s transfer aligns with business efforts to scale back dependence on NVIDIA, which controls 80% of the AI chip market. Microsoft and Meta plan to speculate $80 billion and $60 billion in AI infrastructure subsequent 12 months, respectively.
The chip will use 3-nm expertise with options just like NVIDIA’s, together with quick reminiscence and networking.
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