Korean AI chip startup FuriosaAI raises $620 million, now valued at $2.9 billion

Korean AI chip startup FuriosaAI has raised $620 million in a new funding round, pushing its value to $2.9 billion, nearly four times its previous worth of $735 million. Investors include US-based Infinitum Partners, Korea Growth Fund, and Jericho Capital. The Korea Export-Import Bank also joined in as a first-time direct investor in a startup.

Nvidia's chips now dominate the AI data center market. As AI demand drives up power use, cutting inference costs has become a key focus. Founded in 2017, FuriosaAI started mass production of its RNGD chip in January and is working with Broadcom on a third-generation AI accelerator, aiming to win share with lower power use.

TSMC will make 20,000 RNGD chips for the company this year, with plans to boost output to over 40,000 by 2027. Samsung SDS, LG Group, and Korean AI startup Upstage have all adopted the chip.