South Korean AI hardware startup FuriosaAI has made waves in the global semiconductor industry after reportedly turning down an $800 million acquisition offer from Meta (NASDAQ:META).

The decision shows the startup’s ambition to remain independent and compete directly in the rapidly evolving AI chip market dominated by NVIDIA (NASDAQ:NVDA) and increasingly encroached on by tech giants like Alphabet (NASDAQ:GOOGL, GOOG)) and Microsoft (NASDAQ:MSFT).

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Meta initially called FuriosaAI after months of evaluating potential acquisition targets earlier this year. While Meta’s offer was around $300 million more than FuriosaAI’s estimated market value, negotiations collapsed over differences of opinion about the company’s future direction and post-acquisition structure, according to a report by Maeil Business Newspaper.

“Since October of last year, Meta had been looking at several AI semiconductor companies in the U.S. and Israel, and finally made FuriosaAI a viable acquisition target and negotiated it since the beginning of the year,” an insider reportedly told Maeil Business Newspaper.

FuriosaAI, founded in 2017 by CEO June Paik, specializes in designing AI inference chips for high-performance applications as a power-efficient alternative to power-hungry GPUs. The company has about 140 employees, with more than 90% of them working in the development department. The team also includes veterans from Qualcomm (NASDAQ:QCOM), Samsung, and Google.

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The startup’s main product, RNGD (pronounced “Renegade”), is already getting serious hardware buzz. Launched at Hot Chips 2024, the RNGD chip is built on TSMC’s 5nm process and features dual HBM3 memory, achieving roughly twice the efficiency of traditional GPUs at just one-fourth of the power. In a world where energy-hungry AI models are growing fast, that’s a pitch with global reach.

FuriosaAI has already found some notable partners, and production of RNGD is anticipated to start in the latter part of this year. According to Maeil Business Newspaper, LG AI Research and Saudi Aramco are two of the companies that have signed up to test RNGD’s capabilities.