Samsung backs South Korean AI chip startup Rebellions ahead of IPO

Rebellions, a South Korean startup specializing in artificial intelligence chips, has secured funding from tech powerhouse Samsung as it gears up for a substantial initial public offering (IPO). The company aims to raise between $150 million and $200 million to support its ambitious growth plans, according to CFO Sungkyue Shin, who spoke with CNBC on Tuesday. Founded in 2020, Rebellions has already raised $220 million and is currently in the midst of a new funding round. Notably, last year's merger with fellow South Korean startup Sapeon has positioned Rebellions as a strong competitor to established giants like Nvidia. Shin revealed that while Samsung's recent investment contributes to this funding effort, he chose not to disclose the exact amount. Rebellions' investor roster includes major players such as SK Hynix, SK Telecom, Korea Telecom, and Saudi Arabia's Aramco. The startup's valuation has already reached $1 billion, and Shin anticipates that the forthcoming funding will elevate that figure further as they prepare for their IPO. The company is focused on developing chips designed for AI inferencing, which allows pre-trained AI models to interpret real-time data. This technology underpins the functionality of popular chatbots. With robust backing from South Korea's leading firms, Rebellions is poised to take on Nvidia, AMD, and an array of emerging startups in the AI inferencing market. A key aspect of Rebellions' strategy includes collaboration with Samsung to launch the second-generation chip, known as Rebel. This innovative chip will be manufactured using Samsung's advanced 4-nanometer process, similar to Nvidia's latest Blackwell chips. Rebellions plans to market a product called the Rebel-Quad, which consists of four Rebel chips, with a launch anticipated later this year. Funding from this round will also contribute to advancing product development. CEO Sunghyun Park noted promising results from initial chip tests, further solidifying Samsung's decision to invest. Additionally, Rebellions will utilize Samsung's high-bandwidth memory (HBM3e) to effectively manage intensive data processing tasks. This partnership could significantly benefit Samsung's foundry business, especially as the company seeks to enhance its chip manufacturing capabilities in a competitive market. With a contract worth $16.5 billion to supply semiconductors to Tesla, Samsung is eager to expand its client base. Rebellions' success could not only elevate its position in the market but also solidify Samsung's foothold in the foundry sector as they aim to compete more effectively with TSMC.