South Korean AI chip makers Rebellions Inc and Sapeon Korea Inc have signed a definitive merger agreement.

The announcement of the merger comes after negotiations that began in June as part of a strategy to enhance competitiveness against global leaders like Nvidia.

This merger aims to strengthen South Korea's position in the competitive AI chip market, which is currently dominated by major players such as Nvidia.

Sapeon's shareholders include significant industry players like SK Telecom, South Korea's largest telecom company, and SK Hynix, the world's second-largest memory chipmaker.

In a related development, Rebellions recently received a $15 million investment from Wa'ed Ventures, a venture capital arm of Saudi Aramco, increasing its total funding to over $225 million.