ChatGPT has become a household name in Singapore. Figures also attest to this: Singapore’s number of weekly active ChatGPT users has doubled since the beginning of 2024. Singaporeans are some of the highest per capita users of ChatGPT worldwide. Its parent, OpenAI, has taken note of this and recently established a presence in the island nation. It will open an office later this year.
What does OpenAI’s Singapore expansion mean for the local startup ecosystem? How do you see it affect the ecosystem, particularly regarding talent acquisition and innovation?
We spoke with several startups, VCs, and AI experts in Singapore. Below are their comments and insights:
Dr Sze Tiam Lin, Senior Licensing Advisor at the Singapore Management University’s Institute of Innovation and Entrepreneurship
OpenAI’s presence will increase the competition for AI talent acquisition in Singapore, but it will also draw more foreign talents and startups and drive innovation in generative AI applications. It can create a competitive environment for local startups.
This can lead to an influx of skilled professionals who may start their own ventures, bringing their domain expertise to create more startups.
Accordingly, OpenAI’s advanced research and tools can inspire local startups to innovate. Access to cutting-edge AI models and frameworks can help entrepreneurs develop unique solutions tailored to regional needs.
There may be more opportunities for collaboration between startups and OpenAI, leading to partnerships that could drive product development and market entry strategies. It may also boost investor confidence in the Southeast Asian tech ecosystem. Investors might be more willing to fund AI-focused startups, knowing that a major player like OpenAI is validating the region’s potential.
Mauro Sauco, co-founder and CTO, Transparently.AI (a provider of AI-powered accounting manipulation and fraud detection solutions)
OpenAI’s move signifies a pivotal moment in our AI narrative. It is the large language model (LLM) standard and will bring a reputational benefit that aligns with and reinforces our National AI Strategy. It will also bring more interest and attention to AI startups in this city, which is good for the community.
Also Read: How Transparently.AI uses Artificial Intelligence to detect accounting manipulation, fraud
It’s still too early to say how OpenAI’s operations will unfold in Singapore. Will it be just for sales and growth, or will they build a development hub? If it plans to do engineering, then in the near term, it might soak up all the AI talent to begin with. In the long term, though, this should bring more talent to the region, enriching the ecosystem even more.
It also opens up new areas for potential future integrations and collaborations for startups working with NLP and LLMs, giving them more options to develop AI applications.
Kevin Quah, CEO of Tictag (which collects and annotates image, text, or audio datasets for the training of LLMs)
We see OpenAI’s presence in Singapore encouraging the adoption of AI within the region, speeding up innovation and growth in the space for industry players across the board.
It sends a strong signal that OpenAI believes that Singapore is the regional headquarters for innovation in AI, which will naturally spur both an increase in competition and more opportunities and benefit the ecosystem as a whole.
Jussi Salovaara, Managing Partner and Co-founder of Antler
It will be a double-edged sword for startups in Singapore.
On the one hand, it will elevate the local talent pool by attracting top-tier AI talent and providing startups with access to cutting-edge solutions. On the other, it will challenge resource-constrained startups to offer more compelling value propositions for the region. However, this concern is likely short-term.
In the long run, OpenAI’s presence will result in more talent being trained and developed locally. This expanded talent pool will ultimately benefit the broader ecosystem, with more skilled AI professionals available to both startups and established players alike.
Overall, it will have the potential to drive greater innovation. Startups that can effectively differentiate themselves and offer tailored and verticalised solutions will thrive, ultimately benefiting from the ecosystem’s growth and OpenAI’s influence.
OpenAI might even start acquiring or investing in local AI startups to strengthen its foothold in the Asia-Pacific, potentially sparking a wave of consolidation and offering startups more exit opportunities.
Christian Schneider, CEO and co-founder of Bluesheets (a financial data automation platform)
It is definitely a positive sign if some of the largest (if not the largest) players in the industry commit to the region by setting up an office. From our side (bluesheets.ai), we are mostly keen to connect with them and potentially have an avenue to get into meetings with them about upcoming updates/upgrades and potentially grow closer to the industry.
There will not be a competition issue at all; OpenAI is not competing with any local players in the region. We hope the tech giant is open to collaboration and going deeper into the ecosystem; from the news released, it seems the amount it is willing to invest in the region is fairly small and potentially not going to make a big difference.
Also Read: Bluesheets raises US$6.5M in Series A led by Illuminate Financial
OpenAI’s presence could allow startups in the region to get direct access to the latest solutions coming from them.
Kaniyet Rayev, CEO and co-founder of Boxo (a company that turns apps into super apps)
OpenAI’s opening in Singapore is exciting, but its impact depends on its approach. If it’s just a sales office, its effect on startups will be limited.
However, it could fuel real innovation if it brings in R&D or actively engages with the community—through mentorships, workshops, and collaboration with local startups.
The key will be if OpenAI looks beyond big enterprises and supports startups developing unique, localised AI applications, creating new possibilities for Southeast Asia.
Bhavana Ravindran, co-founder and CEO of Earlybird (AI-powered accounting solutions firm)
Singapore is a natural hub for companies aiming to expand in the broader Asia-Pacific region, and this development further underscores Singapore’s position as a technology leader poised to develop global-scale AI innovations. This gives a huge boost to Singapore-led AI innovation both qualitatively and quantitatively.
OpenAI’s commitment to investing in open data sets will result in richer datasets and, thereby, higher-quality model outputs contextualised for SEA diversity, language nuances, etc. This will contribute to more long-term adoption in the region and seed more innovative use cases. It will have a multiplier effect by promoting better talent and augmenting ecosystems around job creation, education, incubation programmes, etc.
Andrew Liu, co-founder of Momos (AI-powered customer platform for multi-location brands globally)
OpenAI’s presence is incredibly positive. It will help push the region forward and create more opportunities for startups. The fact that OpenAI is running its entire international business from Singapore means there will no doubt be a lot of focus on the region. We’ve been working with OpenAI since its inception, so we think this will only help us grow.
We hope OpenAI develops programmes like AWS does for startups. OpenAI and AI are evolving fast, so startups need to keep up.
Priyanka Mahulkar, founder and CEO, Gram Circle (an influencer marketing firm)
This is a fantastic opportunity for Singapore businesses to thrive, particularly SMEs that wish to integrate AI as an important capability for business growth. An increased number of AI-enabled startups will be set up in Singapore, attracting talent and encouraging innovation further.
Also Read: AI meets influence: Gram Circle’s solution for local brands and nano-influencers
For a company like ours that connects local brands to local influencers, we leverage OpenAI to help our customers reduce the time to launch new campaigns, enable influencer match and improve overall campaign effectiveness.
Yi Ming Ng, co-founder and CEO, Tribe Accelerator
OpenAI’s expansion here presents an exciting opportunity to attract global talent, amplify media and investor attention, and reinforce Singapore’s position as a strategic AI hub.
Seven of ten Singaporean businesses cite going through multiple barriers to tech adoption. Therefore, with OpenAI stepping foot into the market, it could help democratise AI technologies, making them more accessible. With direct access to cutting-edge AI tools and expertise, our local startups can certainly benefit from new collaborations, partnerships, and knowledge-sharing. This will drive innovation across sectors like healthcare and finance while helping startups scale their impact and compete globally.
Hank Sharma, Group CTO and co-founder of discovermarket (an insurtech startup)
OpenAI’s launch of ChatGPT in November 2022 has undeniably catapulted AI into the global spotlight. While the concept isn’t new, ChatGPT’s accessibility has democratised AI, making it a tangible part of everyday life. This has sparked a wave of innovation across various sectors, from business to education.
Like Microsoft’s pivotal role in the software revolution, OpenAI has emerged as a leading force in the AI landscape. Its decision to establish its Asia-Pacific hub in Singapore underscores the nation’s thriving startup ecosystem, which consistently ranks among the world’s top.
The local AI ecosystem is robust, boasting over 80 active AI research institutions, 150 AI R&D teams, and 1,100 AI startups. Local startups should leverage OpenAI’s presence to strengthen their own AI capabilities through partnerships and collaborations.
A recent report solidifies Singapore’s position as a global AI leader, ranking second only to the US. OpenAI’s presence not only enhances Singapore’s international standing but also aligns with its National AI Strategy 2.0, which aims to attract top AI talent and foster a vibrant AI ecosystem.
OpenAI’s entry into Singapore presents a wealth of opportunities for collaboration within the local AI ecosystem. Given the company’s technical expertise and experience, these partnerships can provide invaluable insights and knowledge.
Dorothea Koh, co-founder and CEO of Bot MD (an AI assistant for doctors)
OpenAI’s presence in Singapore will have a very positive impact on the Singapore startup ecosystem. AI/ML talent around the region will attract a lot of interest, which will be great for companies like us (Bot MD) looking to hire LLM/NLP talent in Singapore. The presence of OpenAI will also boost the expertise of the startup ecosystem through partnership programs to help reduce the cost of implementing LLMs at scale.
Juliana Lim, Executive Director (Talent & Community) at SGInnovate
OpenAI’s arrival, like many other global players, is a testament to Singapore’s position as a regional hub for innovation and emerging technologies. In many ways, the adage “you are the company you keep” holds true.
These global pioneers in Singapore offer local talent exposure to different and innovative ways of learning and approaching new technologies from the very best. This goes beyond developing technical skills and fosters entrepreneurial perspectives, which are vital for any startup community.
While this may mean greater competition for talent, healthy competition is an essential contributor to the vibrancy of Singapore’s AI space. In response, this will ensure that our startups become more agile and responsive while providing local talent access to a wider range of opportunities and better-paying jobs.
As ecosystem stewards, we need to focus on creating opportunities for our talent to remain connected to the local ecosystem and creating a virtuous cycle of mentorship and skill exchange.
Mudasser Iqbal, founder and CEO of TeamSolve
OpenAI’s presence in Singapore is a double-edged sword for startups. On the one hand, it may make talent acquisition more challenging, as a global player like OpenAI can offer competitive compensation that young startups may find difficult to match.
However, the arrival of such a significant player will also enhance the local talent pool. As the ecosystem matures, we expect to see more skilled professionals entering the market, offering a broader selection of talent for startups to tap into. OpenAI’s presence could foster innovation by creating an environment where startups can collaborate, learn, and grow alongside top-tier talent and cutting-edge AI technology.
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