FuriosaAI Takes Aim at Nvidia with Game-Changing AI Chip Launching This Month

Nvidia's iron grip on the AI hardware market just got a challenger. FuriosaAI is rolling out its new efficiency-focused chip this month—and it's built to cut costs, bypass bottlenecks, and steal market share.

Why This Chip Matters

It's not just another processor. This is a direct shot at the high-performance computing arena where Nvidia has reigned supreme. The pitch? Raw power isn't enough anymore. The new architecture promises to deliver comparable performance while slashing the two things enterprises hate most: power bills and hardware sprawl.

The Efficiency Play

For data centers drowning in kilowatt-hours, efficiency is the new battleground. FuriosaAI's design targets the thermal and power constraints that limit scaling. Think lower operational costs and denser server racks—a compelling argument for CFOs watching their bottom line melt under cooling costs.

Market Ripples

A genuine alternative could fragment the supply chain and give buyers leverage. That means more competition on price and innovation—something the entire AI sector desperately needs to keep growth sustainable. It also pressures incumbents to move beyond just iterative GPU updates.

The Bottom Line

One chip won't dethrone a giant overnight, but it proves the moat isn't impenetrable. For an industry hooked on Nvidia's roadmap, a credible second source is like a shot of adrenaline. The real test? Whether developers and data center operators are willing to bet on a new architecture—or just wait for Nvidia's next earnings call to justify their existing capex. Sometimes, the most innovative thing in tech is a working alternative that doesn't require selling a kidney to afford.

TLDR

• FuriosaAI has started commercial production of its new RNGD AI inference chip.
• The company claims RNGD offers competitive performance while using less power than Nvidia’s GPUs.
• OpenAI showcased the chip in Seoul and LG reported strong real-world testing results.
• CEO June Paik founded FuriosaAI after leaving Samsung to pursue AI innovation.
• The company is currently valued at nearly $700 million after its latest funding round.

FuriosaAI, a South Korean semiconductor firm, begins commercial production of its latest inference chip this month, entering Nvidia’s territory. The RNGD chip claims strong AI performance with lower power use, targeting a market Nvidia leads. OpenAI, LG, and Meta have all shown interest, as FuriosaAI positions itself against Nvidia’s dominance.

FuriosaAI Launches RNGD to Rival Nvidia

FuriosaAI launched in 2017 under CEO June Paik, a former Samsung memory-chip engineer and AMD GPU designer. The company now prepares to mass-produce its RNGD chip, focusing on AI inference workloads.

OpenAI recently demonstrated RNGD at an event in Seoul, where LG also reported “excellent real-world performance” during its testing phase. RNGD, short for “renegade,” supports high-performance inference with improved energy efficiency, a key challenge in AI hardware.

Nvidia dominates AI hardware, especially for training models, but FuriosaAI sees an opening in inference, where energy use matters more. FuriosaAI says RNGD can run large AI models while using less power than Nvidia’s top GPUs.

CEO Paik presented RNGD at Stanford’s Hot Chips conference, showcasing Llama model performance with better power efficiency. “It was a moment where we felt we could really MOVE forward with our chip with confidence,” Paik said.

Company Roots in Samsung, Vision from Stanford

June Paik founded FuriosaAI after recovering from an Achilles injury sustained at a Samsung soccer match. During recovery, he studied AI through Stanford’s online courses.

After returning to Samsung, he chose to leave and build something in AI. He then formed FuriosaAI with former colleagues in hardware and algorithms.

Hanjoon Kim, the current CTO, worked with Paik at Samsung and co-founded the startup. He says Paik focused on fast decisions and long-term strategies.

The startup adopted strategies from the book “Blitzscaling,” promoting speed and bold action in early market entry. Paik emphasized this during the company’s first development stages.

Market Position Strengthens as Talks Advance

FuriosaAI completed a new funding round, valuing the company at nearly $700 million. Meta showed acquisition interest last year, though no deal was finalized.

FuriosaAI says it is now in talks with more potential clients and industry players. These discussions follow successful demonstrations of RNGD’s AI inference capabilities.

According to Paik, RNGD rivals Nvidia’s GPUs while using less energy, which lowers operating costs. “A market dominated by a single player that’s not a healthy ecosystem, is it?” he said.

South Korea supports AI development through both private and government initiatives. Nvidia has already finalized GPU supply deals with South Korea, arranged by the government.

FuriosaAI continues building commercial partnerships as it moves into production. The company remains focused on AI inference chips with performance and power advantages.