Instead of Selling to Meta, AI Chip Startup FuriosaAI Signed a Huge Customer
South Korean AI chip startup FuriosaAI made headlines with its recent partnership to supply its AI chip, RNGD, to enterprises utilizing LG AI Research’s newly introduced EXAONE platform. This strategic collaboration is set to target crucial sectors such as electronics, finance, telecommunications, and biotechnology, offering a wide range of applications.
RNGD, FuriosaAI’s innovative chip, has been optimized to run large language models (LLMs). Just last week, the Korean technology giant LG launched EXAONE 4.0, its next-generation hybrid AI model. This partnership highlights the synergies between FuriosaAI’s cutting-edge chip technology and LG’s advanced AI model, indicating significant prospects for the future.
Interestingly, this announcement arrives approximately three months after FuriosaAI rejected an $800 million acquisition offer from Meta, choosing instead to remain an independent entity. The deal reportedly fell through due to disagreements pertaining to post-acquisition business strategy and organizational structure rather than financial disagreements. Meta’s interest in acquiring AI chipmakers like FuriosaAI suggests a broader strategy aimed at reducing dependence on third-party suppliers, such as Nvidia.
FuriosaAI’s CEO, June Paik, emphasized the company’s commitment to its mission, expressing excitement about the partnership’s potential impact. Paik views the collaboration as a significant opportunity to contribute to sustainable AI computing, both for the company and on a personal level.
With acquisition talks off the table, at least from Meta’s side, Paik did not specify whether the startup is pursuing new funding opportunities. However, the CEO voiced optimism that this partnership will open business opportunities beyond South Korea. “LG AI’s EXAONE is seen as the leading sovereign AI model in South Korea. It is set to play a pivotal role not just within LG but across the Korean AI ecosystem,” noted Paik. The anticipated demand for EXAONE, as well as FuriosaAI’s chip solutions, is expected to extend to global markets thanks to LG’s collaborations with international clients.
LG AI’s adoption of FuriosaAI’s chip and accelerator is particularly noteworthy as it represents a rare public endorsement of a competitor to Nvidia by a major firm. One of the key reasons for the success of this partnership lies in the affordability of FuriosaAI’s hardware. “We needed to demonstrate that our solution provides strong performance while also reducing the total cost of ownership,” explained Paik.
FuriosaAI asserts that its RNGD accelerator outperformed competitive GPUs when used with LG AI Research’s EXAONE models, delivering an impressive 2.25 times better inference performance. Additionally, Paik mentioned that FuriosaAI’s hardware was recognized by LG for superior energy efficiency.
This partnership marks a significant step for FuriosaAI as it expands its footprint beyond South Korea. The collaboration with a major player like LG AI Research not only validates FuriosaAI’s technological advancements but also positions it as a formidable competitor in the global AI chip market. As such, this collaboration stands as a significant endorsement of FuriosaAI’s innovative solutions and positions the startup for exciting growth opportunities in the field of AI technologies.
