LG Taps FuriosaAI for AI Chips, Validating Nvidia Challenger’s Technology
In July 2025, LG made a bold move. It partnered with FuriosaAI, a South Korean startup that builds AI chips. This isn’t just a regular tech deal. It’s a big step toward breaking Nvidia’s grip on the AI hardware market.
FuriosaAI may not be a household name yet, but it’s quickly becoming one to watch. Backed by big players like Hyundai Motor and Naver, it aims to create faster and smarter chips for AI tasks. Now, with LG choosing it for next-generation AI-powered devices, the startup has earned a strong vote of confidence.
Why does this matter to us? Because the world is shifting. AI is not just in labs anymore. It’s in our homes, cars, and phones. And with more demand for edge AI, companies like LG need new kinds of chips, ones that are powerful, efficient, and tailored for smart tech.
This partnership tells us something important: the AI chip game is changing.
Who is FuriosaAI?
FuriosaAI began in Seoul in 2017. Its goal: build powerful AI chips that can challenge market leaders like Nvidia. Its key chip, RNGD (pronounced “Renegade”), is tailored for large-language model (LLM) tasks. The startup is supported by the Samsung and SK Hynix networks and has a team of about 140 engineers, with 90% bringing elite experience. FuriosaAI has also turned down a major acquisition offer, Meta’s $800 million deal, choosing independent growth instead.
Why LG’s Partnership Matters
LG AI Research approved FuriosaAI’s RNGD chip after a seven-month evaluation of power efficiency and performance. The chip is set to power LG’s EXAONE large language models and assist its proprietary AI agent, ChatExaone. This shows FuriosaAI’s tech can power real business applications across LG’s electronics, finance, telecom, and biotech sectors.
Challenging Nvidia: Can FuriosaAI Compete?
Nvidia leads the AI chip sector, holding over 80% of the market share. Still, FuriosaAI stands out with RNGD built specifically for AI. Tests by LG show a 2.25 improvement in inference performance per watt over GPUs. LG also saw big drops in total cost and energy use. That efficiency may give it an edge for edge computing and focused AI tasks, areas where GPUs are not always ideal.
The Broader South Korean AI Ambition
South Korea is pushing to reduce tech reliance on US/China players. FuriosaAI joins peers like Rebellions and Semifive to build national AI chip talent. Supported by the government and Samsung/SK’s semiconductor ecosystem, these startups are fueling a local boom in AI hardware innovation.
What This Means for the AI Hardware Market
AI demand is exploding, from smart devices to cloud services. This needs specialized chips, not just GPUs. Big players like Amazon and Google have already built their own, Inferentia, TPU. Now LG’s pickup of RNGD shows major firms trust non-Nvidia chipmakers too.
We expect more regional AI-chip startups to emerge, supporting a more diverse and competitive market.
Conclusion
LG’s partnership with FuriosaAI marks a turning point. This shows that RNGD has been tested and confirmed to be both reliable and efficient. FuriosaAI, still independent and funded, is ready to expand to the U.S., Middle East, and Southeast Asia. This win shows FuriosaAI has moved from “challenger” to credible competitor. The global AI chip landscape is beginning to change, and we are watching it in real time.
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