Artificial intelligence startup Rebellions has merged with Sapeon Korea, a subsidiary of SK Telecom in a move to challenge the dominance of Nvidia in the global AI chip market.
Rebellions, a fabless chip designer, brings a valuation of approximately 900 billion won ($664 million) to the table, while Sapeon Korea, known for supplying AI chips to data centers, is valued at 550 billion won.
Together, they aim to carve out a significant presence in a market that was worth $34.3 billion in 2023, with Nvidia commanding a 94 percent share.
The merger, which is expected to be finalized before the year’s end, will see the combined entity surpassing a corporate value of 1 trillion won, thereby earning the status of a “unicorn” – a startup valued at over $1 billion.
This strategic move reflects the intense competition and rapid evolution within the AI sector globally.
Under the agreed terms, the corporate value ratio between Sapeon Korea and Rebellions is set at 1:2.4. Post-merger, the surviving entity will operate under the Rebellions brand, with Rebellions’ co-founder and CEO, Park Sung-hyun, at the helm of management.
Park has been instrumental in Rebellions’ swift growth trajectory and will continue to lead the combined firm.
To ensure the smooth operation and management stability of the newly formed Rebellions, shareholders of Sapeon Korea — which include SK Telecom, SK hynix, and SK Square — will divest 3 percent of their shares post-merger.
This move is designed to secure a controlling stake for Rebellions’ executives, solidifying their leadership role.
SK Telecom’s CEO, Ryu Young-sang, emphasized the strategic importance of this merger, noting that it strengthens the competitive edge of their AI value chain, which is a core component of SKT’s broader AI strategy.
Analysts said this merger not only signals a significant shift in the AI landscape in South Korea but also sets the stage for an intensified global rivalry in AI technology development.