Korean AI Unicorn Created Through Merger Agreement

The highly anticipated merger between two of Korea's leading AI companies, Sapeon and Rebellions, has been officially announced by Sapeon's parent company SK Telecom. This announcement comes two months after the initial plan was revealed, signaling a significant development in the country's AI landscape.

Under the agreement, Sapeon and Rebellions will merge with an equity value ratio of 1:2.4, reflecting their respective corporate values and assets. Following the merger, Sapeon Korea will transition to become Rebellions, with the company being led by Rebellions' current leadership team, including CEO Park Sung-hyun.

Sapeon Korea, which was spun off from SK Telecom's internal R&D organization in 2016, has been a key player in the AI semiconductor industry. The company made headlines in 2020 with the introduction of South Korea's first AI semiconductor for data centers and continued its innovation with the launch of the X330 chip in November 2023.

On the other hand, Rebellions, founded in 2020, has quickly made a name for itself in the industry. With over US$225 million in funding, the company began mass production of its Atom AI chip this year and has plans to release the Rebel follow-on chip by the end of the year, showcasing its commitment to advancing AI technology.

In a statement regarding the merger, Ryu Young-sang, CEO of SK Telecom, expressed optimism about the collaboration, stating, "Signing this agreement will greatly enhance our global position in AI semiconductors, one of the key parts of the AI value chain we're developing. We will continue to invest strategically and work together to become a leader in the AI era."

Similarly, Park Sung-hyun, co-founder and CEO of Rebellions, highlighted the significance of the merger, saying, "South Korea has long been a powerhouse in memory semiconductors. Today, we're taking a crucial step to extend that leadership into the realms of logic chips and AI through this landmark consolidation."