FuriosaAI, a South Korean AI chip startup, announced a partnership with LG AI Research to supply its RNGD AI chip to enterprises utilizing the EXAONE platform, following its rejection of an $800 million acquisition offer from Meta.
The RNGD chip is specifically engineered for optimal performance with large language models (LLMs). This collaboration follows LG’s introduction of its next-generation hybrid AI model, EXAONE 4.0, which occurred the week prior to the partnership announcement. The strategic alliance aims to serve diverse applications across key sectors, including electronics, finance, telecommunications, and biotechnology.
This development occurred approximately three months after FuriosaAI declined an $800 million acquisition proposal from Meta, opting to maintain its independent operational status. Local media outlets indicated that the acquisition talks failed due to fundamental disagreements concerning post-acquisition business strategy and organizational structure, rather than financial considerations. Meta’s pursuit of AI chipmakers, such as FuriosaAI, aligns with its broader corporate objective of reducing its dependency on external suppliers like Nvidia.
June Paik, CEO of FuriosaAI, addressed the termination of discussions with Meta, stating, “We want to continue our mission, and I think it’s an exciting opportunity at the same time. I believe it’s a very impactful contribution, both personally and for the company, to make AI computing more sustainable.” Paik did not elaborate on whether the company is seeking new funding following the decision to forgo the acquisition.
Meta offered AI expert a $1.25B contract, got denied
Paik anticipates that the partnership with LG AI Research will generate business prospects extending beyond the South Korean market. Paik noted, “LG AI’s EXAONE is regarded as the leading sovereign AI model in South Korea. It won’t be used just within LG. It will be one of the main AI models used in the Korean AI ecosystem. We expect there will be many demands for this EXAONE, as well as for our chip solutions in South Korea, but not only in Korea. The LG team is also partnering with and doing business with global customers. So, we also expect this to be used by those customers, including global customers.”
LG AI’s decision to integrate FuriosaAI’s chip and accelerator represents a notable endorsement of an Nvidia competitor by a major enterprise, as highlighted by Paik. A significant factor in this adoption was the demonstrated cost-effectiveness of FuriosaAI’s hardware. Paik affirmed, “We had to prove that our solution not only delivers strong performance but also lowers total cost of ownership.”
FuriosaAI asserts that its RNGD accelerator demonstrated superior performance compared to competitive GPUs when running LG AI Research’s EXAONE models, achieving 2.25 times greater inference performance. Paik also confirmed that LG determined FuriosaAI’s hardware offered enhanced energy efficiency. FuriosaAI’s chip is designed exclusively for AI applications, distinguishing it from general-purpose GPUs. Paik explained, “We can support a wide variety of AI models efficiently. But unlike GPUs, which are still fundamentally general-purpose processors, our architecture is natively built for AI computing. We do not develop our chip for rendering or mining.” The Seoul-based startup, which also maintains an office in Santa Clara, currently employs a global team of 15 individuals.
