Two prominent South Korean startups specializing in artificial intelligence chip production, Rebellions and Sapeon, have decided to merge. This was reported by TechCrunch.
The merger of Rebellions and Sapeon is a strategic move aimed at securing leadership in the local AI chip market and competing with global giants like Nvidia.
Nvidia currently holds 97% of the global market for specialized AI microchips. In June, the company unveiled a new generation of AI chips.
The combined company may go public within the next two to three years, according to two anonymous industry sources.
Rebellions and Sapeon view the next two to three years as a “golden time” for South Korea to capture the global AI chip market. With the rapidly growing demand for neural processors, they intend to strengthen their business in this sector following the merger.
The companies plan to finalize the deal in the second half of 2024. Rebellions will lead the business operations, with employees from both firms joining the new enterprise.
The announcement comes roughly four months after Rebellions secured $124 million in Series B funding, valuing the company at $658 million. In August 2023, Sapeon raised $45 million, with the firm valued at $380 million.
In April 2024, Nvidia acquired the Israeli AI startup Run:ai, which assists developers and operations teams in managing and optimizing AI infrastructure.