South Korean artificial intelligence chip manufacturers Rebellions Inc. and Sapeon Korea Inc. have entered into a definitive merger agreement, as announced by the private companies on Sunday.

The merger negotiations were initially disclosed in June. This agreement represents the most recent endeavor by South Korean companies to compete with prominent global AI chip leaders, such as Nvidia.

Sapeon’s shareholders include SK Telecom, South Korea’s largest telecommunications company, and SK Hynix, the world’s second-largest memory chip manufacturer.

In July, Rebellions received a $15 million investment from Wa’ed Ventures, the venture capital arm of Saudi Aramco. With this investment, Rebellions’ total funding has surpassed $225 million.