South Korean AI Chip Makers Rebellions and Sapeon to Merge

South Korean artificial-intelligence chip makers Rebellions Inc and Sapeon Korea Inc have announced a definitive merger agreement, according to Reuters. The private companies confirmed the deal on Sunday, following their earlier discussions about a merger that began in June.

The merger of Sapeon and Rebellions represents a strategic move by South Korean firms to challenge the dominance of global AI chip leaders such as Nvidia. Sapeon’s shareholders include major players like South Korea’s largest telecom company, SK Telecom, and the world’s second-largest memory chipmaker, SK Hynix.

Read more: EU Competition Chief Flags Nvidia AI Chip Supply Issue, Regulatory Response Unclear

In a related development, Rebellions secured a $15 million investment from Wa’ed Ventures, the venture capital arm of Saudi Aramco, in July. Per Reuters, this funding has boosted Rebellions’ total investment to over $225 million, further positioning it for competitive growth in the AI chip market.

According to PYMNTS, “the rise of AI-specific chips is poised to revolutionize commerce across sectors. These specialized processors, optimized for machine learning tasks, promise to dramatically accelerate AI applications in everything from autonomous vehicles to personalized marketing.” As businesses increasingly rely on AI to drive decision-making and enhance customer experiences, the demand for powerful, efficient AI chips is expected to surge, potentially reshaping supply chains and creating new economic powerhouses.

Source: Reuters