Media: AI Chip Developer FuriosaAI Seeks to Raise Up to $500 Million Ahead of IPO

• Seoul-based AI chip developer prepares for $300–$500 million Series D round.
• The funds will be used for mass production of the RNGD chip and development of the next generation.
• The company is considering an IPO as early as 2027.

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FuriosaAI, a startup developing chips for artificial intelligence, intends to raise up to $500 million in a financing round before going public. The company is preparing to strengthen its position in the AI accelerator market, which is dominated by Nvidia, according to Bloomberg.

According to their data, FuriosaAI plans to conduct a Series D round of $300 million to $500 million. Morgan Stanley and Mirae Asset Securities have been brought in as advisors. The terms of the deal have not yet been disclosed, and representatives of the parties declined to comment.

The company intends to use the funds raised to launch mass production of its second-generation RNGD chip, expand its international business, and develop a third-generation chip. Sources note that FuriosaAI is also considering an initial public offering (IPO) as early as 2027.

The company is expected to receive its first commercial batch of RNGD chips from Taiwan Semiconductor Manufacturing by the end of this month. According to FuriosaAI, the RNGD architecture provides more than twice the performance per watt advantage over traditional graphics processors.

The company was founded in 2017 by Jun Paik, who formerly worked at Samsung Electronics and Advanced Micro Devices. FuriosaAI specializes in energy-efficient accelerators for inference and processing of AI workloads in data centers.

The startup’s plans are part of a broader investment boom in the AI hardware segment. Over the past year, Cerebras Systems, Groq, and other companies have attracted large rounds of funding, reflecting growing competition with Nvidia in the market for specialized accelerators.

Earlier, it was also reported that Etched, a startup developing AI processors, raised about $500 million in a new round of funding.

As a reminder, we wrote that OpenAI had signed a $10 billion contract with chip manufacturer Cerebras.