FuriosaAI, Korean Chip Startup, Secures $125M to Accelerate AI Chip Production
It has been learned that FuriosaAI, a Korean chip startup seeking to challenge industry giant NVIDIA (NVDA.US), has secured $125 million in its latest funding round to help accelerate the production of its AI chips.
FuriosaAI announced in a statement that this round exceeded its original target of $80 million, attracting investors including the Korea Development Bank (KDB), Industrial Bank of Korea (IBK), Keistone Partners, and Kakao Investment. The company's latest valuation has reached $735 million.
FuriosaAI CEO June Paik stated that this new funding will be used to produce its AI inference chip, RNGD ("Renegade"), which is expected to start production at TSMC (TSM.US) by the end of this year. The company also plans to launch the development work on its next-generation AI chips.
According to data, June Paik co-founded FuriosaAI with two partners in 2017 after working at Samsung Electronics and AMD (AMD.US).
This funding round is a critical moment for the eight-year-old startup. Earlier this month, FuriosaAI signed a major contract with LG Group. Previously, it had rejected Meta's (META.US) $800 million acquisition offer and chose to continue developing its business independently.
June Paik emphasized that FuriosaAI's mission is to make AI computing more affordable, energy-efficient, and accessible. He noted that even industry giants like OpenAI struggle with high infrastructure costs, making it difficult for them to turn a profit.
Although FuriosaAI may seem small compared to NVIDIA, which has a market value of $42 billion and is seen as the standard in the AI chip industry, June Paik is confident that his company can achieve competitive advantages with its more advanced and efficient technology. "Our company will truly demonstrate its value in the future."