Aramco’s Venture Arm Backs South Korea’s AI Chipmaker Rebellions

(Bloomberg) — Saudi Aramco’s venture arm has invested $15 million in South Korean chipmaker Rebellions Inc. as part of a push to accelerate the AI industry in Saudi Arabia.

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Rebellions is working with Samsung Electronics Co. to develop its proprietary chip to serve the generative artificial intelligence market. The startup in June agreed to combine its business with rival Sapeon Korea Inc., a unit of SK Telecom Co., and has said it’s looking at a possible initial public offering in South Korea.

Wa’ed Ventures, the $500 million venture arm of Aramco, functions effectively as an investment vehicle for Saudi Arabia. It also joined a $6.5 million funding round for California-based AI platform aiXplain last Tuesday, making the Rebellions deal its second investment in the industry in less than a week.

“Investing across the AI stack is not just a strategic move as venture capital investors but also a commitment toward accelerating the Kingdom’s efforts in the global technology and innovation race,” said Fahad Alidi, managing director at Wa’ed Ventures.

Wa’ed said its investment in Rebellions is its first deal in South Korea. Rebellions plans to use the funding to establish a new subsidiary in Saudi Arabia and launch business operations there, according to a statement.

Saudi Arabia itself has emerged as hot bed for startup activity in the Middle East. It raised $412 million in VC funding in the first half of 2024, the highest in the Middle East and North Africa, according to data platform Magnitt. It ranked second for emerging markets, behind Singapore.