FuriosaAI, a South Korean AI chip startup, is reportedly in acquisition talks with Meta Platforms, with discussions could conclude by the end of February, according to Forbes.

The company develops AI inference accelerators for data centers, including its latest RNGD chip, which launched in August.

The chip offers cost and energy efficiency advantages over Nvidia’s high-end processors. Estimated at around US$10,000 per unit, the RNGD chip is significantly cheaper than Nvidia’s US$40,000 H100.

The potential acquisition aligns with Meta’s efforts to reduce reliance on Nvidia as AI processor demand surges.

While Meta has developed its own MTIA chip, it is still in the early stages of achieving full independence.

Following the news, shares of FuriosaAI’s investors surged on Korea’s Kosdaq market.