Asia’s awkward embrace of Chinese AI

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In focus

• ​​How geopolitics is influencing Asian firms’ embrace of Chinese AI
• A VC’s case for investing in quantum computing
• Revisit our report on Shein’s 2024 financials as it forecasts an optimistic 2025

Hello reader,

When DeepSeek dropped its large language model (LLM) in January, many thought it was a game-changer. Here was a Chinese AI company delivering the same product as its US counterparts did for less.

Despite DeepSeek’s operational achievements, its China connection got in the way. A number of countries, including Japan, called the company a “security risk.”

It’s a tricky conundrum for Chinese AI: Under the law, local tech firms are required to cooperate with the government when it comes to data processing and storage. But for many governments, this is a risk too far – one they are unwilling to take.

Our first Top Story today delves into how the reputation of Chinese AI companies precedes them, clouding even their prospects among enterprises considering their services. And even when businesses do use their products, few are open to talking about them.

Meanwhile, our second Top Story talks about a new VC in Singapore that’s keen to invest solely in quantum computing. QAI Ventures makes a case for opening an office in the city-state. After all, it has a deep talent pool, top-notch university research, and a stable financial sector.

Elyssa Lopez, journalist

Top Stories

1️⃣ Asian firms divided on Chinese AI as geopolitics bite

Photo credit: 123rf

While governments in Asia have largely stayed neutral in the AI development race between the US and China, enterprises in the region are caught in the crossfire. Some are choosing to keep their AI solution stacks free of Chinese LLMs while others request them for their functionality and cost efficiency.

2️⃣ Investors pour in as quantum threat nears reality

Quantum computers are expected to arrive in three to seven years. QAI Ventures is preparing for this, even opening an accelerator program aimed at funding five to eight startups in Singapore. This is part of the company’s bid to build an ecosystem focused on the tech.

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