Rebellions, a South Korean fabless AI chip startup, has recently secured $124 million in Series B funding to support the development of its new AI Rebel chip. The funding round, led by strategic investor KT, aims to accelerate the production of Rebellions’ data center-focused chip, Atom, while also facilitating the development of its third AI chip, Rebel, in collaboration with Samsung Electronics. With the AI chip market expanding rapidly, Rebellions aims to position itself as a contender by offering versatile technology that supports various generative AI models. The company’s unique selling point lies in its claim to have more versatility than customized AI chips, enabling the support of multiple AI accelerators.
Rebellions’ partnership with Samsung not only aligns their objectives of improving data processing efficiency but also seeks to capitalize on the growing demand for large language models and hyperscalers in the generative AI market. With Rebel set to be completed later this year, Rebellions is poised to make significant strides in the AI chip industry, challenging the dominance of market leader Nvidia.
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Rebellions raises $124M to develop its new AI Rebel chip with Samsung
Rebellions, a South Korean fabless AI chip startup, has announced the closure of a $124 million Series B round of funding. The funding will be used to develop the company’s new AI chip called Rebel, as well as to ramp up production of their data center-focused chip, Atom, and for hiring. The initial target of $90 million was oversubscribed, resulting in a post-money valuation of approximately $658 million.
Overview of the funding round
In the Series B round, KT, a South Korean telecom giant, led the funding as a strategic investor. Previous backers Pavilion Capital and Korea Development Bank also participated, along with new investors Korelya Capital and DG Daiwa Ventures. This infusion of capital brings the total raised by Rebellions to around $210 million since its inception in 2020.
The importance of AI chips in the industry
Nvidia currently leads the AI chip market, with a strong presence in both hardware and software. However, the industry continues to face challenges in data processing and high costs associated with AI applications. As a result, there is a growing demand for innovative breakthroughs to improve these areas. Many big tech companies, such as Google, Amazon, Apple, and Microsoft, have already developed their own AI chips. Additionally, startups like Rebellions are bringing new concepts to the table to enhance processing speed and efficiency.
Rebellions’ partnership with Samsung
Rebellions has partnered with Samsung Electronics to develop its Rebel chip. The goal is to complete the development of Rebel by the end of the year and begin mass production in 2025. This next-generation AI chip will target the generative AI market, specifically large language models and hyperscalers. Rebel will utilize Samsung’s 4-nanometer fabrication process and will be deployed in Samsung’s advanced memory chip technology HBM3E, which handles high bandwidth memory.
Rebellions’ unique selling point
A key selling point of Rebellions’ technology and products is their versatility. Unlike customized AI chips, Rebellions’ chips can support various generative AI models that require AI accelerators. The company emphasizes its cooperation with Samsung throughout the entire process, from co-development and chip design to mass production.
Samsung’s motivation for the partnership
Samsung, as South Korea’s largest memory chip maker, has been pursuing its own generative AI model called Samsung Gauss. The partnership with Rebellions not only allows Samsung to collaborate on chip development but also aligns with its efforts to integrate AI into its products and services. Additionally, Samsung has been working with customers using its previous generations of chips.
Rebellions’ other AI chips
In addition to Rebel, Rebellions has developed two other AI chips. The Atom chip, designed for data centers, is capable of supporting language models of up to 7 billion parameters. This chip is expected to generate revenues in the second half of this year. The Ion chip, designed for edge computing, is currently undergoing qualification testing in the U.S. and has yet to secure any commercial customers. Rebellions sees potential use cases for the Ion chip in financial services, particularly for institutions building their own hardware for stock prediction and trading applications.
Revenues and commercialization
Rebellions expects to generate revenues from the Atom chip in the second half of this year. The Ion chip is currently undergoing qualification testing and has the potential for use in financial services applications. The company is actively exploring partnerships and collaborations to drive commercialization and adoption of its AI chips.
Other investments and partnerships
Rebellions has received a $100 million investment from Tenstorrent, another AI chip startup, and has formed a partnership with Hyundai. Additionally, the company is collaborating with KT for Atom chip installation, further expanding its network of strategic partnerships.
In conclusion, Rebellions’ latest funding round of $124 million will enable the development of their new AI Rebel chip in partnership with Samsung. This partnership will not only benefit Rebellions but also aligns with Samsung’s own generative AI ambitions. With a focus on versatility and cooperation with Samsung, Rebellions aims to make a significant impact in the AI chip market.
Related site – Rebellions lands $124M to develop its new AI Rebel chip with Samsung