[AI Revolution](41) "See You in 10 Months"... Startup Challenges Nvidia

FuriosaAI Embarks on Semiconductor Development for ChatGPT Service

Amid the hype surrounding massive AI models like ChatGPT, global semiconductor giant Nvidia's market capitalization surpassed $1 trillion (approximately 1,280 trillion KRW). It is currently regarded as having no competitors in the market. However, a domestic AI semiconductor fabless startup has thrown down the gauntlet to Nvidia. That company is 'FuriosaAI.' Recently, it succeeded in mass-producing its first-generation chip, gaining recognition for its potential in the market.

FuriosaAI was founded in 2017 by CEO Junho Baek, a semiconductor expert who previously worked on design at American semiconductor company AMD and Samsung Electronics' Memory Business Division. Its core product is an AI semiconductor called a neural processing unit (NPU), which mimics the neural networks of the human brain. Currently, the company has about 100 in-house developers. AI semiconductors that process vast amounts of data with low power consumption and low cost are essential in the era of massive AI.

FuriosaAI succeeded in mass-producing its first-generation chip, 'Warboy,' in the first quarter. Services using the product have already been launched by companies such as Kakao Enterprise. Half of the companies selected for the Ministry of Science and ICT's AI Voucher Support Project decided to use FuriosaAI's 'Warboy.' Additionally, in the 'High-Performance Computing Support Project,' about 60 out of 100 participating companies are conducting business through a consortium of FuriosaAI and Kakao Enterprise. Warboy's strength lies in its low power consumption relative to its outstanding computing power. Last year, in the global AI semiconductor performance test competition 'MLPerf,' it demonstrated nearly twice the computing power compared to competitors' products in the object recognition category.

Currently, FuriosaAI is developing its second-generation chip, 'Renegade,' with mass production samples expected in about 10 months. Recently, it partnered with LG AI Research to jointly research and commercialize next-generation AI semiconductors and generative AI. Using the second-generation chip under development, they will verify commercial generative AI technology based on LG AI Research's massive AI model 'Exaone.' At present, solutions capable of commercializing massive models like ChatGPT are limited to Nvidia's A100 and H100. CEO Baek said, "FuriosaAI's second-generation chip is a top-tier product that can service massive language models more competitively than the currently widely used graphics processing unit (GPU) solutions," adding, "We expect it to be a globally leading and competitive product."

Recently, Sam Altman, CEO of OpenAI, visited Korea and expressed interest in the Korean semiconductor ecosystem. Possibilities for collaboration with major domestic AI semiconductor companies have been raised. CEO Baek said, "Semiconductors are a global business, and since FuriosaAI has global competitiveness, there will definitely be opportunities for global cooperation," adding, "If such opportunities arise, we will gather all our capabilities and actively collaborate."

Warboy server (Photo by Puriosa AI)

CEO Baek defines FuriosaAI's competitiveness as innovation that changes the paradigm. He said, "It is difficult to compare with Nvidia in terms of sales, but AI semiconductors have competitiveness in that they design a new paradigm. For example, it is like moving from gasoline cars to electric cars," adding, "From that perspective, the successful mass production and commercialization of the first-generation 'Warboy' is very meaningful. Going forward, how quickly we can further advance the product is important."

CEO Baek believes AI is still in its early stages. He expects AI to spread throughout our daily lives in the future, which will expand the activity areas of AI semiconductor companies. His goal is to proactively root the company in the AI ecosystem and lead the market. He said, "In the future, AI will be used universally and start to increase productivity in more areas, and accordingly, the demand for AI semiconductors will continuously grow." He also said, "Currently, Nvidia monopolizes the market, but looking 5 to 10 years ahead, innovation will occur." His future goal is "to evolve repeatedly with the 3rd, 4th, and 5th generation AI, establish global leadership, and become a key company in the AI ecosystem."