Korea’s AI Leaders Rebellions and Sapeon to Merge

Rebellions is poised to take the lead as the senior partner in an upcoming merger, although specific financial terms have not been disclosed. The CEO of Rebellions, Park Sung-hyun, is expected to assume the role of CEO in the merged entity. However, the final name for the combined company is yet to be determined.

Sapeon recently made a significant move by relocating its headquarters to San Jose, California, signaling a strategic shift in its operations.

The parent company of Sapeon, SK Telecom, announced that the merger between Sapeon and Rebellions is aimed at enhancing their competitive position in what they describe as an "all-out battle" for the future of AI semiconductors in Korea. Reports suggest that the two companies are targeting to finalize the merger by the end of September, with the new entity expected to be operational by the end of 2024.

Sapeon, established in 2022 as a spin-off from SK Telecom, SK Hynix, and SK Square, focuses on the development of AI processors as a fabless company. On the other hand, Rebellions, founded in 2020 and associated with KT Corp., a prominent data center business in South Korea, has been making strides in the AI semiconductor industry.

In a significant development in November 2023, Sapeon introduced its X330 AI accelerator chip designed for data centers, utilizing TSMC's advanced 7nm manufacturing process. The company has also diversified its portfolio to include offerings in autonomous driving and edge services.

Rebellions recently secured a substantial funding boost of US$124 million in a Series B round at the beginning of 2024, positioning itself to compete with industry giants like Nvidia in the AI data center sector. The company, part of a burgeoning fabless Korean AI ecosystem supported by Samsung as a chip maker, plans to utilize the funding for the development of its third AI processor, Rebel, tailored for running large language models.

Recognizing the urgency in the rapidly evolving AI semiconductor landscape, the stakeholders of Rebellions and Sapeon are moving swiftly. SK Telecom has referred to the upcoming two to three years as the "golden time" for AI semiconductor competition, underlining the critical nature of the merger and subsequent developments.

Following the merger, SK Telecom, along with other key investors such as SK Hynix, SK Square, and KT Group, have committed to supporting the newly formed corporation in advancing AI semiconductor technologies in Korea and ensuring technological sovereignty.

For more information on Sapeon and Rebellions, visit their official websites:

• www.sapeon.com
• www.rebellions.ai

Exciting recent developments in the Korean AI semiconductor industry:

• Sapeon launches X330 neural processor
• SK spin-off Sapeon raises funds for neural processors
• Korean AI chipmaker Rebellions closes $124 million funding round
• South Korean startup Rebellions launches AI processor