This article was posted on March 26, 2025, at 3:41 p.m. on the ChosunBiz MoneyMove site.
The domestic artificial intelligence (AI) semiconductor design startup FuriosaAI is nearing completion on securing a new investment of 70 billion won. The funds already secured exceed 60 billion won. Despite facing challenges in securing funds due to investor disinterest last year, leading to liquidity crisis rumors, the situation has completely changed this year.
In particular, it has been found that institutional investors, including venture capital (VC) firms, have been confirming investments one after another. The attempt by global big tech Meta to acquire FuriosaAI has been evaluated as a reevaluation of the company's technological capabilities. FuriosaAI chose to pursue independent growth instead of accepting the acquisition proposal.
According to the VC industry on the 26th, FuriosaAI has entered the final stage of its 70 billion won Series C bridge investment round that was resumed earlier this year. It is understood that Korea Development Bank, IMM Investment, Korea Investment Partners, Eugene Securities, and others have secured over 60 billion won in investments.
If FuriosaAI completes the investment acquisition, liquidity is expected to improve. Last July, FuriosaAI sought to raise 80 billion won in investments at a corporate valuation of around 800 billion won, but faced difficulties in securing the target funds due to investor disinterest.
There were also rumors of a crisis in the market. This was due to securing only 80 billion won out of the 160 billion won targeted for the Series C investment round in 2023. FuriosaAI had set a goal to secure an additional 80 billion won by the end of the year after the first closing in July of the same year but was unable to complete it.
The fall of semiconductor company FADU has led to delays in the execution of investments by VCs, and concerns over the technological capabilities of FuriosaAI's second-generation AI semiconductor chip 'Renegade,' released last August, were also raised. There were assessments that FuriosaAI would not have the funds to continue technology development.
The news that Meta has initiated the acquisition and merger of FuriosaAI served as a turning point. It was reported that Meta, having experienced below-expectation performance in developing its own AI chips, began negotiations with FuriosaAI earlier this year after seeking to acquire a foreign semiconductor company with technological capabilities.
There were also suggestions that the sudden rumors of a sale might be 'a strategy to increase FuriosaAI's valuation' or 'to facilitate smooth investment acquisition,' but regardless, the market responded. In particular, it is reported that investor interest has significantly focused on Renegade, which Meta is said to be interested in.
Renegade is an AI semiconductor specialized for AI inference tasks, reported to consume only about 25% of the power compared to existing GPUs, yet achieving double the performance efficiency. It is produced based on TSMC's 5-nanometer process, maximizing computation performance with high-bandwidth memory.
Last June, when the merger between Sapion and Rebellion, which had also gained attention as AI semiconductor design startups along with FuriosaAI, was pursued, FuriosaAI chose independent growth led by Renegade. It is reported that Sapion had first proposed the merger to FuriosaAI.
FuriosaAI has again chosen independent growth. It is reported that the company recently provided a final notification of their refusal to sell to Meta. Instead, they plan to begin full-scale production of Renegade in the second half of this year, using the new investment acquisition funds of 70 billion won.
Currently, the investment acquisition by FuriosaAI is reportedly led by Korea Development Bank, which has confirmed an investment of close to 30 billion won, nearly half of the total investment acquisition target amount. This is viewed as part of policy support following the rise of AI semiconductors as a national strategic industry.
The fact that FuriosaAI could become an M&A target at any time is also cited as a factor fueling investor interest. In particular, the acquisition price proposed by Meta is $800 million (approximately 1.2 trillion won), surpassing FuriosaAI's corporate value, which is evaluated at around 800 billion won, by about 400 billion won.
A domestic VC official noted, “Big tech companies, including Meta, are focusing on developing their own semiconductors to reduce their reliance on Nvidia and lower investment expenses,” and said, “The possibility of acquisition proposals from other big tech companies beyond Meta is also a factor driving investments.”
Meanwhile, FuriosaAI has received over 167 billion won in investments, recognized for its AI semiconductor technological capabilities. Investors include DSC Investment, Korea Development Bank, T.S. Investment, Naver D2SF, Quantum Ventures Korea, Korea Omega Investment & Finance, Schmitt, and Korea Investment Partners.