South Korean artificial intelligence chip manufacturers Rebellions Inc. and Sapeon Korea Inc. announced on Sunday that they have formalized their merger with the signing of a definitive agreement.

The merger, initially discussed in June, represents a strategic move by South Korean firms to compete with global AI chip leaders, notably Nvidia.

Sapeon Korea Inc., backed by major stakeholders such as SK Telecom, South Korea’s largest telecommunications company, and SK Hynix, the world’s second-largest memory chipmaker, brings significant industry influence to the merger.

Rebellions Inc., which recently bolstered its financial position with a $15 million investment from Wa’ed Ventures, the venture capital arm of Saudi Aramco, has now accumulated more than $225 million in total funding.