Facebook owner Meta Platforms (META) is reportedly looking to buy South Korean AI chip startup FuriosaAI as the race to develop innovative technologies heats up.
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Deal Could be Sealed This Month
According to a report in Forbes, Meta, whose share price was flat on the news, is already in talks to buy the business, and a deal could be completed as early as this month. However, the deal is complex, with several other companies also in talks to acquire FuriosaAI, the report added. If Meta manages to land the deal, it would be a huge boost to its custom chip efforts – which essentially means designing and developing its own chips specifically for its own applications. This would be crucial for Meta given a shortage of Nvidia (NVDA) chips and a growing demand for alternatives.
FuriosaAI designs and develops data center accelerators for the “most advanced AI models and applications.” It was founded in 2017 and has to date raised more than $100 million with investments from DSC Investment, Korea Development Bank, and Naver, the largest internet provider in Korea.
Meta Focus is on Llama
The news of a potential deal comes only 24 hours after Meta cut 5% of its headcount, roughly 3,600 employees, as it continued its shift from a social media to an AI company. Meta Platform’s Llama AI model has fallen behind its rivals and has been impacted by the emergence of DeepSeek, a Chinese lower-cost AI model. This means Meta founder and CEO Mark Zuckerberg wants to dedicate more resources to improving Llama and having a bigger presence in the new AI world.
Is Meta a Good Stock to Buy?
On TipRanks, Meta has a Strong Buy consensus based on 44 Buy, 3 Hold and 1 Sell rating. Its highest price target is $935. Meta stock’s consensus price target is $746.61 implying an 6.66% upside.
