South Korean AI chip startup Rebellions has raised $250 million in a Series C funding round, reaching a valuation of $1.4 billion. The round included participation from Samsung Ventures, Arm, Pegatron VC, and the Korea Development Bank.

Samsung currently manufactures Rebellions' chips using 4nm and 5nm processes, with plans to transition to 2nm technology. The startup specializes in accelerators for AI inference, utilizing a chiplet-based architecture for its flagship Rebel-Quad design.

The collaboration serves Samsung's strategic interests by providing a showcase customer for its advanced fabrication nodes. Additionally, the growth of the AI accelerator market increases potential demand for Samsung's high-bandwidth memory products.

The investment reflects a broader industry trend of seeking alternatives to Nvidia's market dominance. By acting as both an investor and a manufacturer, Samsung aims to improve foundry utilization rates and diversify its semiconductor business.