Dear reader,
The rise of DeepSeek signals a seismic shift in AI competition, challenging OpenAI’s dominance and exposing the fragility of US-led AI innovation. OpenAI’s concerns over “knowledge distillation” highlight an uncomfortable truth—AI progress is built on open research, but when that openness benefits rivals, the rules suddenly change.
The US has long championed free-market innovation, yet its response to China’s AI advancements leans heavily on protectionism—export controls, investment restrictions, and now potential legal action.
While these measures may slow competitors like DeepSeek, they also expose a deeper issue: Can AI leadership be sustained through barriers rather than breakthroughs?
Meanwhile, accusations of intellectual property misuse raise broader ethical questions. Many of the same US firms now calling out AI copying have themselves built on open-source research. The AI race is increasingly mirroring the semiconductor war—where cutting off supply chains and imposing restrictions might delay competition, but won’t stop it.
For startups in Southeast Asia, this battle underscores the need for self-reliance and innovation beyond regulatory shields. As AI technology continues to globalise, those who can adapt and iterate—rather than simply block competition—will be the true winners.
Sainul,
Editor.
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NEWS & VIEWS
OpenAI says Chinese rivals using its work for their AI apps
The status of OpenAI – and other US firms – as the world leaders in AI has been dramatically undermined this week by the sudden emergence of DeepSeek, a Chinese app that can emulate the performance of ChatGPT, apparently at a fraction of the cost.
DeepSeek gets Silicon Valley talking
R1 seemingly matches or beats OpenAI’s o1 model on certain AI benchmarks. The company claims one of its models only costs US$5.6M to train, compared to the hundreds of millions of dollars that leading American companies pay to train theirs.
DeepSeek: Everything you need to know about the AI chatbot app
Being a reasoning model, R1 effectively fact-checks itself, which helps it to avoid some of the pitfalls that normally trip up models | Reasoning models take a little longer to arrive at solutions compared to a typical non-reasoning model.
Tech stocks drop after DeepSeek’s low-cost AI release
US Nasdaq futures fell over 3%, while S&P 500 futures dropped nearly 2% | AI chipmaker Nvidia experienced an 8.4% decline during premarket trading | Major tech firms like Microsoft, Meta Platforms, and Alphabet saw declines of 4%, 3.7%, and 3.1%, respectively.
Alibaba releases AI model it says surpasses DeepSeek
The unusual timing of the Qwen 2.5-Max’s release on Chinese New Year points to the pressure Chinese AI startup DeepSeek’s meteoric rise in the past three weeks has placed on not just overseas rivals, but also its domestic competition.
DeepSeek’s AI chatbot disrupts Southeast Asia’s data centres
With the development of its free AI chatbot, DeepSeek has undercut major competitors like OpenAI and Google’s Gemini, questioning the viability of resource-intensive data centre strategies in the region.
Rakuten drops IPO plan, shifts strategy in competitive market
The Japanese company initially sought an IPO to stabilise its finances after entering the competitive wireless carrier market | Rakuten has now opted to focus on strengthening its collaboration with Mizuho Securities Co.
Google staff worry about potential layoffs, call for buyouts
Over 1,250 Google employees in the US and Canada have asked the company not to use low-performance reviews as justification for dismissals | This petition comes amid ongoing cost-cutting measures at Google.
Thailand approves TikTok’s US$3.8B investment
This investment will support data hosting services, with operations expected to commence in 2025 | Other companies – including Amazon Web Services, Google, and Australia’s NextDC – have announced plans for similar developments in Thailand.
SoftBank said to invest US$25B in OpenAI
If this investment is confirmed, SoftBank would become the largest backer of the AI company | SoftBank’s direct investment in OpenAI may range from US$15B to US$25B, in addition to its existing US$15B commitment to Project Stargate.
AI app spending hits US$2B, ChatGPT leads market: report
Since its mobile release in May 2023, ChatGPT has generated US$529B in revenue, far surpassing competitors | Global spending on AI apps nearly quadrupled in 2024, reaching US$1.4B in that year alone, with notable growth in the final quarter.
Microsoft, Meta defend AI spending amid DeepSeek disruption
Mark Zuckerberg stated that heavy spending on AI infrastructure would be a long-term advantage for Meta | Satya Nadella emphasized that Microsoft’s investments are necessary to overcome capacity constraints and meet rising AI demand.
US nominee claims DeepSeek used stolen US technology
President Trump’s commerce secretary nominee, Howard Lutnick, emphasised the need for the US to set global AI standards, similar to its cybersecurity framework, to maintain leadership in the field.
Ex-Binance CEO’s YZi Labs invests US$16M in token platform
The platform, Sign, specialises in token distribution and on-chain credential verification | Sign is recognised for its token airdrop services | It aims to streamline the distribution of new cryptocurrencies.
OpenAI requests Indian court to dismiss copyright lawsuit
The Federation of Indian Publishers claims that OpenAI’s ChatGPT generates book summaries and extracts from unlicensed copies, thus violating intellectual property rights.
FEATURES & INTERVIEWS
SquareX’s paradigm shift: Tackling cyber threats one browser at a time
Unlike traditional solutions that focus on prevention by blocking known threats, SquareX adopts an attack-focused approach, detecting and neutralising attacks as they happen.
Easing access to government bonds: Libeara’s vision for financial inclusion
Libeara’s platform enables governments to issue bonds directly to citizens in low denominations, eliminating unnecessary intermediaries.
The 2 forces shaping coffee consumption and how Fore Coffee uses them to push for growth
With 61 new outlets launched across 43 cities in Indonesia and one in Singapore, Fore Coffee operates 217 locations as of September 2024.
FROM THE ARCHIVES
Beyond disposal: How businesses can embrace sustainable IT practices in Malaysia
Businesses can contribute to sustainable practices by adopting circular economy principles and making eco-conscious choices.
Proactive defense: The role of incident response plans in cybersecurity
Organisations must proactively plan for cybersecurity threats with tailored strategies rather than adopting a reactive stance.
Charting a clear course: Building effective communication in SEA’s hybrid work era
Between hybrid and remote teams, problems of communication can be a source of endless frustration for employees and managers.
From peak scrolling to personalised communities: The Gen AI solution
As AI drives change, creators aiming to build a Gen AI app must reassess data flows to craft a magical, creative Gen-AI experience with meaningful data.
Exploring the boundaries of AI: What AI can or cannot do?
AI holds immense promise to transform industries and enhance human capabilities, revolutionising businesses worldwide.
What is the risk of a cyber attack on my company?
If your company employs 100+ individuals, the probability of having at least one vulnerable employee is virtually inevitable | This reality compels business leaders to confront a harsh truth — it’s not a matter of if their company will experience a breach, but rather when it will occur.
Why do people fall for online scams in this digital age?
Insufficient cybersecurity invites identity theft and financial losses as scams target both money and personal information.
Shield your business: A guide to common scams targeting small businesses
As scams become more sophisticated, especially through convincing emails, small business owners must stay vigilant and train their teams.
Securing Singapore’s leadership in AI Innovation
Singapore fosters an ecosystem promoting experimentation, investment, and knowledge exchange, enabling AI technologies to flourish.
Beyond the money: How small angel cheque fuels startup success
Small angel cheques in startup fundraising showcase the dynamic interconnectedness of the investment ecosystem.
Digital scams are on the rise – Is Asia ready for the fight?
The region’s rapid digital expansion has created fertile ground for malicious activities to flourish online, leaving individuals exposed to phishing attempts, AI-powered deepfakes, and a growing range of online cons.
Why Dive Analytics sets its sights on Latin America for its strategic global expansion
Singapore-based edutech company Dive Analytics calls its approach to entering Latin America strategic and collaborative.
Will hybrid schooling break walls for the next generation?
Here’s why I think the hybrid model makes sense for our education system; and how Edutech is making it happen.
How Noodle Factory addresses educator burnout with its AI-powered teaching assistants
Using AI, Noodle Factory provides human-like lessons, creating a personalised learning experience for learners.
Reimagining tuition: How tutors can stay ahead of an evolving learning system
All in all, like any other industry that has been around for a long time, tuition centres must be proactive in embracing and initiating change to remain competitive.
The future of blockchain technology goes beyond just cryptocurrency and NFTs
Even in this intimidating climate, governments worldwide are still experimenting with blockchain technologies and cryptocurrencies.
Decoding digital preferences: A glimpse into the future of health tech ecosystem in SEA
Digital learning trends, peer networks, and healthcare’s alignment with learning habits bode well for health tech innovations in the region.
Post-pandemic education: Why edutech remains a game-changer
It is an exciting time for the world of edutech as we are now presented with the unique opportunity to push boundaries and reinvent ourselves.
THOUGHT LEADERSHIP
DeepSeeking the future: The ripple effect on tech, crypto, and global markets
The global financial landscape is rapidly evolving, shaped by technology, policy shifts, and changing market dynamics.
Tech SMEs play key role in fuelling Asia’s digital economy boom
In a region rich in diversity, SMEs are using digital tools to innovate, adapt, and thrive—shaping the future of Asia’s economic landscape.
Creating agile workspaces: Why flexibility is key in today’s manufacturing landscape
Agile workspaces continue to evolve, driven by technology, market changes, and an increasing focus on sustainability.
The AI age is changing the data centre industry – Here’s how Singapore can pivot
With resilience, innovation, and sustainability, Singapore can achieve its vision and set a precedent for the region and beyond.
Navigating Web3: Challenges and triumphs on the path to decentralisation
Understanding Web3’s potential requires placing it in the context of the Network Economy, which has reshaped industries over the past decade.
Johor-Singapore SEZ: 1963 reimagined?
JS-SEZ offers a chance to strengthen the strategic partnership between Singapore and Malaysia, as their political ties remain solid.
The post Ecosystem Roundup: AI’s new battleground: OpenAI vs. DeepSeek | Rakuten drops IPO plan | SoftBank said to invest US$25B in OpenAI appeared first on e27.