[AI Revolution](19) Challenging Nvidia, Sapion Proves 4 Times Higher Performance...

Developed with 100% In-House Technology
Targeting 20 Trillion KRW in Cumulative Sales by 2027

Last year, an AI semiconductor was recognized for its excellence by recording performance 4.6 times higher than NVIDIA's data center GPU 'A2 chip' at 'MLPerf,' a representative benchmark competition in the artificial intelligence (AI) field. The protagonist is 'X220,' the first commercial product of the native AI semiconductor design company Sapeon. AI semiconductors are processors that execute large-scale computations at ultra-high speed and low power to implement AI services. They correspond to the core brain of AI.

Sapeon was established through a joint investment of 80 billion KRW by three ICT affiliates under SK Group: SK Telecom, SK Square, and SK Hynix. 'Sapeon' is a compound word of sapiens (SAPiens), meaning humanity, and aEON, meaning eternity, reflecting the will to continuously provide the benefits of AI semiconductor-based artificial intelligence innovation to humanity. Spun off from SKT in 2021, Sapeon is headquartered in Silicon Valley and targets global big tech companies based in the U.S. as its main clients.

Ryu Su-jeong, CEO of Sapeon, said, "Sapeon developed the core AI semiconductor technology, the neural processing unit (NPU), 100% internally from hardware to software," adding, "We are targeting the largest data center inference service semiconductor market and the autonomous driving semiconductor market among AI semiconductors." The NPU is a processor optimized for AI deep learning algorithms.

[Photo by SK Telecom]

'Sapeon X300' Series to be Released

The first product, 'X220,' was launched in November 2020. It is Korea's first commercial AI semiconductor. Based on an AI accelerator project started in 2016, prototype development was carried out over three years, leading to the release of a commercial product immediately applicable to data centers. The 'X220,' optimized for inference in data centers, performs deep learning computations 1.5 times faster than GPUs with similar specifications while consuming only 80% of the power.

For a startup AI semiconductor company to penetrate the global market, building a track record across various applications is crucial. Sapeon built a cloud infrastructure based on X220 at NHN's data center in Pangyo. Additionally, it supplied products to broadcasting equipment of Castdara, a joint venture between SKT and Sinclair Group, the second-largest TV broadcaster in the U.S. This product converts low-resolution images to high-resolution in real time. Sapeon also signed a memorandum of understanding (MOU) with the University of Toronto in Canada to provide an NPU farm composed of X220 and X330 free of charge and is conducting joint research using it. The NPU farm is an NPU-based data center capable of processing big data quickly and efficiently like a human neural network.

The 'X300' series to be released this year adds real-time learning functionality. It can be applied not only to data centers but also to various fields such as automotive, security, and media. Sapeon plans to implement a full technology set providing integrated solutions from AI semiconductor-based hardware to AI algorithms and AI-based services software.

Recognized Technology, Investment Love Calls

Sapeon attracted strategic investments from GS Group affiliates and Daebo Group. As strategic investors, GS affiliates and Daebo Group participated in the main investment round through Ascent Equity Partners. GS Construction invested through its venture capital subsidiary, Xplore Investment.

These companies plan to expand cooperation into areas such as public sector AI service infrastructure construction, media, Internet of Things (IoT), smart factories, data centers, cloud, smart cities, and distribution partnerships. CEO Ryu Su-jeong said, "The strategic investments from GS affiliates and Daebo Group are meaningful not only in verifying Sapeon's technological capabilities but also in applying them to various business areas," adding, "We will cooperate to provide high-quality AI services based on technology and experience."

Sapeon plans to release server semiconductors 'X330,' autonomous driving and mobility semiconductors 'X340,' and edge device semiconductors such as 'X350' for smartphones this year. It also plans to launch the 'X430,' which applies next-generation high-performance memory developed by SK Hynix. Through this, the company aims to grow into a company with cumulative sales of 2 trillion KRW and a corporate value of 10 trillion KRW by 2027.