FuriosaAI, Rebellions and DeepX
Prioritize fundraising over IPOs
Wide gap between revenue and valuation
Focus shifts to business execution
South Korean AI chip startups regarded as unicorns are slowing their initial public offering (IPO) plans and shifting their focus to raising capital to strengthen their businesses. The companies aim to improve profitability through commercial production and customer expansion before pursuing IPOs at higher valuations.
According to industry sources on July 28, FuriosaAI, Rebellions and DeepX are prioritizing large fundraising rounds while adjusting their IPO schedules accordingly.
Rebellions, once expected to go public this year, is now targeting a Kospi listing in the first half of next year. The company completed a 640 billion won pre-IPO financing round in March and plans to file for a preliminary listing review by year-end. Before going public, it intends to expand commercial production of its second-generation AI inference chip, Rebel-100, and increase customer shipments to strengthen operating performance.
FuriosaAI and DeepX are taking a longer-term approach focused on building business results.
FuriosaAI received approval in May for direct investment from the National Growth Fund and is pursuing an 800 billion won pre-IPO financing round, including matching private investment. After closing the financing in early August, the company plans to focus on commercial production of its second-generation Renegade chip and development of a third-generation processor, targeting an IPO in the second half of 2028.
DeepX, which is conducting a Series D financing round worth 300 billion to 350 billion won, plans to complete fundraising during the third quarter. The company intends to prioritize expanding commercial revenue and reaching break-even before deciding on an IPO.
The cautious approach reflects the wide gap between current revenue and multi-trillion-won valuations. Companies could struggle to justify their private-market valuations during an IPO unless they first demonstrate commercial production, customer growth and improved profitability.
Last year's revenue totaled 5.7 billion won for FuriosaAI, 32 billion won for Rebellions and 3.3 billion won for DeepX. Compared with their respective valuations of 3.4 trillion won, about 3 trillion won and about 2.85 trillion won, the valuation-to-revenue multiple reaches as high as 800 times.
An investment banking industry official said AI semiconductor companies require considerable time to move from product development to customer validation, mass production and revenue generation.
“The companies appear to believe they can secure higher valuations by using newly raised capital to expand commercial production and develop next-generation products before pursuing an IPO once revenue growth or break-even becomes visible,” the official said.
FuriosaAI and Rebellions were named unicorn companies this year by South Korea's Ministry of SMEs and Startups. DeepX is expected to join them once its latest fundraising round is completed.
