In a significant development within the artificial intelligence (AI) hardware sector, South Korean startup FuriosaAI has announced a strategic partnership with LG AI Research. This collaboration will see FuriosaAI supplying its advanced AI chip, RNGD (pronounced Renegade), to enterprises utilizing LG’s newly unveiled EXAONE 4.0 platform. This alliance is poised to impact key industries such as electronics, finance, telecommunications, and biotechnology, offering a diverse range of applications.
Background on FuriosaAI and RNGD
Founded in 2017 by CEO June Paik, a former engineer at Samsung Electronics and Advanced Micro Devices (AMD), FuriosaAI has rapidly emerged as a formidable player in the AI semiconductor market. The company’s flagship product, RNGD, is engineered to optimize the performance of large language models (LLMs), which are integral to various AI applications. Manufactured using Taiwan Semiconductor Manufacturing Co.’s 5-nanometer process and incorporating high-bandwidth memory (HBM3) from SK Hynix, RNGD is designed to deliver high performance while maintaining energy efficiency.
LG AI Research’s EXAONE 4.0 Platform
LG AI Research, the AI division of South Korea’s LG Group, recently introduced EXAONE 4.0, a next-generation hybrid AI model. This platform is designed to enhance AI capabilities across multiple sectors, providing advanced solutions for complex tasks. The integration of FuriosaAI’s RNGD chips into the EXAONE 4.0 platform is expected to significantly boost the platform’s performance, enabling more efficient processing of large-scale AI models.
Strategic Implications of the Partnership
This partnership marks a pivotal moment for FuriosaAI, especially considering the company’s recent decision to decline an $800 million acquisition offer from Meta Platforms Inc. The proposed acquisition fell through due to disagreements over post-acquisition business strategy and organizational structure, rather than financial terms. By choosing to remain independent, FuriosaAI has demonstrated a commitment to its mission of advancing AI computing sustainability and innovation.
CEO June Paik emphasized the significance of this collaboration, stating, We want to continue our mission, and I think it’s an exciting opportunity at the same time. I believe it’s a very impactful contribution, both personally and for the company, to make AI computing more sustainable.
Expanding Global Reach
While the partnership with LG AI Research is rooted in South Korea, its implications extend far beyond national borders. LG’s EXAONE platform is positioned as a leading sovereign AI model in South Korea, with plans for global deployment. Paik highlighted the potential for international expansion, noting that the collaboration is expected to reach global customers through LG’s extensive network.
LG AI’s EXAONE is regarded as the leading sovereign AI model in South Korea. It won’t be used just within LG. It will be one of the main AI models used in the Korean AI ecosystem. We expect there will be many demands for this EXAONE, as well as for our chip solutions in South Korea, but not only in Korea. The LG team is also partnering with and doing business with global customers. So, we also expect this to be used by those customers, including global customers, Paik explained.
Challenging Industry Norms
The decision by LG AI Research to adopt FuriosaAI’s RNGD chips is noteworthy, as it represents one of the few public endorsements of a competitor to industry leader Nvidia by a major enterprise. This move underscores a growing trend among companies to diversify their hardware suppliers and invest in emerging technologies that offer competitive advantages in performance and cost.
Future Prospects
Looking ahead, FuriosaAI is focused on scaling production and expanding its customer base. The company is currently in discussions with investors to raise approximately $48 million (KRW 70 billion) to support the rollout of the RNGD chip. This funding round is expected to close within the month, positioning FuriosaAI for continued growth and innovation in the AI hardware market.
By forging strategic partnerships and maintaining its independence, FuriosaAI is poised to make significant contributions to the AI industry, offering advanced solutions that meet the evolving needs of enterprises worldwide.
