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In focus
- The opportunity cost of US$20,000-a-month AI agents
- Carousell’s leap into luxury as it bets on higher-margin businesses
- The latest snag in GCash’s IPO plans
Hello reader,
Are US firms more forward-looking than their counterparts in Asia?
In a conversation I had with Hypotenuse AI CEO Joshua Wong last month, he noted how companies in the US tend to be more willing to spend on AI solutions than those in Asia.
For one, US firms’ proximity to Silicon Valley means they’re not only more plugged in on the latest tech – they are also driven by a desire to stay “as close to the edge” as possible.
There’s also a more practical reason: costs.
Businesses tend to think of AI as a substitute for existing costs. As such, higher labor costs in the US mean that whatever AI companies charge for their agents or solutions, they’re more likely to land a paying customer in the country.
It’s perhaps not surprising that a majority of Hypotenuse AI’s clients are in the US, followed by Europe and Asia.
Today’s Big Story looks at the cost of AI agents – which some predict could reach US$20,000 a month by year-end. The bigger question is this: Will companies be willing to pay for them?
Riding on the theme of costs, classified and recommerce marketplace Carousell cut net losses by 13% in 2024 while growing revenue by 3% year on year. My colleague Miguel Cordon breaks down the numbers in his analysis.
As the firm prioritizes higher-margin businesses going forward, luxury recommerce will be an area of growing importance.
Whether it’s AI agents or luxury bags, it all comes down to cost and value.
Melissa Goh, senior editor
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