AI chipmakers Rebellions, Sapeon sign formal merger deal
The merged corporation will be launched before the end of 2024 and become South Korea’s first “unicorn” AI company.
AI chipmakers Sapeon Korea and Rebellions have signed a formal merger agreement in another attempt to challenge global AI chip leader Nvidia.
In June, the two South Korean companies said they were seeking a merger to boost competitiveness in the global AI chip market.
The merged entity will be called Rebellions, according to a report by The Korea Times.
While Rebellions is an AI chip fabless startup, Sapeon is an AI chip processor affiliate of mobile carrier SK Telecom. Rebellions made an AI system-on-chip called ATOM that supports large language models. Sapeon created South Korea’s first AI chip for data centers in 2020.
The integrated entity is expected to have a corporate value of more than 1 trillion won ($743.8 million).
“We were able to make this merger agreement as investors and major business partners of both companies showed great determination and support under the belief that the nation should put in an all-out effort to help its AI chip industry make a leap,” said Rebellions CEO Park Sung-hyun.
Rebellions is valued at 900 billion won ($664 million) and Sapeon Korea is valued at 550 billion won ($412 million).
The merged corporation will be launched before the end of 2024 and become South Korea’s first “unicorn” AI company.
Shareholders of Sapeon Korea, comprising SK Telecom, SK hynix and SK Square, will sell 3 percent of their shares, allowing Rebellion executives to maintain their position as largest shareholders, according to The Korea Herald.
The global AI chip market is currently dominated by US-based Nvidia. In 2023, Nvidia had 94 percent of the market share.
