- Saudi Aramco’s venture capital arm, Wa’ed Ventures, has invested $15 million in South Korean AI chipmaker Rebellions Inc.
- The investment aims to accelerate the AI sector within Saudi Arabia and enhance its global technology positioning.
- Rebellions is collaborating with Samsung Electronics on a proprietary chip for generative AI and recently merged with Sapeon Korea Inc.
- Wa’ed Ventures also participated in a $6.5 million funding round for AI platform aiXplain, marking its second AI investment in a week.
- Fahad Alidi of Wa’ed Ventures emphasized the investment’s strategic importance in advancing Saudi Arabia’s technological ambitions.
- The funding will help Rebellions establish a subsidiary and launch operations in Saudi Arabia.
- Saudi Arabia secured $412 million in VC funding in the first half of 2024, leading the MENA region and ranking second globally for emerging markets.
Main AI News:
Saudi Aramco’s venture capital arm, Wa’ed Ventures, has announced a strategic investment of $15 million in Rebellions Inc., a South Korean company specializing in AI chip technology. This investment is part of Aramco’s broader initiative to enhance the AI sector within Saudi Arabia and strengthen its position in the global technology landscape.
Rebellions is collaborating with Samsung Electronics Co. to advance its proprietary chip, designed to cater to the burgeoning generative artificial intelligence market. In a significant move, Rebellions recently merged with Sapeon Korea Inc., a subsidiary of SK Telecom Co., and is contemplating an initial public offering (IPO) in South Korea to further capitalize on its growth potential.
Wa’ed Ventures, which operates with a substantial $500 million fund, has rapidly expanded its portfolio in the AI sector. Just last week, the venture arm also participated in a $6.5 million funding round for aiXplain, a California-based AI platform. This marks Wa’ed Ventures’ second investment in the AI field within a short span, underscoring its commitment to driving technological innovation.
Fahad Alidi, managing director of Wa’ed Ventures, highlighted the strategic significance of these investments: “Investing across the AI stack represents not only a prudent venture capital strategy but also a steadfast commitment to accelerating Saudi Arabia’s ambitions in the global technology and innovation race.”
This investment in Rebellions is Wa’ed Ventures’ first venture into South Korea, reflecting its broader strategy to tap into international markets. The funds from this investment are earmarked for establishing a new subsidiary in Saudi Arabia and launching business operations there, further solidifying the company’s presence in the region.
Saudi Arabia is increasingly becoming a focal point for startup activity in the Middle East. The country secured $412 million in venture capital funding during the first half of 2024, the highest in the Middle East and North Africa (MENA) region. This positions Saudi Arabia as a key player in the emerging markets, only behind Singapore, according to data from the platform Magnitt. The substantial investment inflows and growing startup ecosystem underscore the country’s evolving role as a major hub for innovation and technology in the region.
Conclusion:
Wa’ed Ventures’ investment in Rebellions underscores Saudi Arabia’s strategic push to become a leading player in the global AI industry. By expanding its venture capital activities into South Korea and enhancing local AI capabilities, Saudi Arabia is positioning itself as a key technology hub in the Middle East. This move not only strengthens Saudi Arabia’s technological footprint but also reflects its growing influence in global markets, potentially attracting further international investments and accelerating the country’s innovation ecosystem.
