Meta Platforms (META) has faced a setback in its AI chip development push as Seoul-based startup FuriosaAI reportedly rejected its $800 million acquisition offer. According to South Korean media reports, the rejection was due to structural and strategic differences, rather than the offer price.
Based in South Korea, FuriosaAI is an artificial intelligence (AI) chip startup specializing in high-performance AI accelerators for data centers and machine learning applications.
Meta’s $800M Offer Rejected
FuriosaAI has opted to remain independent, signaling confidence in its growth prospects. The startup intends to continue advancing its AI chip development and large-scale production, focusing on its flagship RNGD processor, specifically tailored for large language models (LLMs) and multimodal AI applications in data centers.
The deal, which had been in discussions since early this year, was part of Meta’s broader strategy to strengthen its proprietary AI chip technology and enhance its flagship Llama AI models. Earlier this month, Reuters reported that Meta is testing its first internally developed chip for training AI systems. This marks a significant step in Meta’s efforts to create custom silicon and lessen its dependence on external providers like Nvidia (NVDA).
Meta’s Bold Bet on AI Infrastructure
Additionally, Meta’s interest in FuriosaAI was driven by its AI expertise and technology rather than its chip development. This fits into Meta’s larger plan to enhance its AI infrastructure, which is essential for its long-term goals, including the metaverse expansion.
Meta is making significant investments in AI infrastructure to stay competitive against industry leaders like Microsoft (MSFT)-backed OpenAI and Alphabet’s (GOOGL) Google, as well as emerging players like China’s DeepSeek. In January, CEO Mark Zuckerberg announced that the company plans to allocate up to $65 billion this year, focusing on building a massive data center and expanding its AI talent pool.
Is META Stock a Good Buy?
On TipRanks, META stock has a consensus Strong Buy rating among 48 Wall Street analysts. That rating is based on 44 Buys, three Holds, and one Sell assigned in the last three months. The average META price target of $763.71 implies a 28% upside from current levels.
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