Asia Tech Wire (Aug 19) -- SK Telecom's artificial intelligence chip startup Sapeon Korea has signed a merger agreement with rival Rebellions.

The deal is due to create a combined business with a corporate value of more than 1 trillion won ($740 million), the companies said in a joint statement Sunday.

Meanwhile, the deal is the latest attempt by South Korean companies to challenge global AI chip leaders such as Nvidia.

Rebellions co-founder and CEO Sunghyun Park will lead the management of the combined company, and SK Telecom will support its expansion as a strategic investor.

The two South Korean companies had said in June that they planned to merge.