Wa’ed Ventures Invests $15 Million in Chipmaker Rebellions

Saudi Aramco’s venture arm, Wa’ed Ventures, has invested $15 million in South Korean chipmaker Rebellions Inc. to support the AI industry in Saudi Arabia. Rebellions is developing its proprietary chip in collaboration with Samsung Electronics Co. to serve the generative artificial intelligence market. The startup recently agreed to merge with rival Sapeon Korea Inc., a unit of SK Telecom Co. and is considering an initial public offering (IPO) in South Korea.

This investment is Wa’ed Ventures’ first deal in South Korea. Rebellions plans to use the funds to establish a new subsidiary in Saudi Arabia and begin business operations there. This comes after Wa’ed joined a $6.5 million funding round for California-based AI platform aiXplain, marking its second investment in the AI sector in less than a week.

Hassan Sawaf, the founder of aiXplain, believes that the climate is ripe for entrepreneurs looking to make an impact.

Saudi Arabia has become a hub for startup activity in the Middle East, raising $412 million in VC funding in the first half (H1) of 2024, the highest in the Middle East and North Africa. It ranked second for emerging markets, behind Singapore, according to data platform Magnitt.

Saudi Arabia, propelled by Vision 2030--the country's blueprint to diversify its economy away from oil--is driving ongoing government investments in large-scale infrastructure projects and enhancing infrastructure and services to meet the needs of its growing population. 

The history of venture business in Saudi Arabia is a story of strategic evolution. Introduced in 2021, the Vision 2030 strategy aims to increase the private sector’s contribution to GDP to 65% and raise direct foreign investments to 5.7% of GDP by 2030. This ambitious strategy has laid the groundwork for a surge in investments across various sectors, from entertainment and tourism to futuristic “giga-projects” like NEOM–a $1.5 trillion infrastructure plan.