SeaCloud: A costly puzzle for investors?

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In focus

• Sea’s AI cloud gamble leaves investors scratching their heads
• Heidi Health slashes jobs, a day after Canva
• Sequoia retreats from London, axes Arc and Scouts programs

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Hello reader,

Sea has a track record of making bold moves.

It was early to recognize the potential of ecommerce in Brazil, for instance. The group also invested in building an in-house logistics platform that now handles most Shopee orders.

But its foray into cloud computing could be its most ambitious undertaking yet, depending on the scale of its plans, which remains unclear.

The move comes as tech giants, hyperscalers, and neocloud providers face growing scrutiny over the huge sums they’re spending – and the debt they’re taking on – to build AI infrastructure.

But rather than speculate over the scant details released in a 700-word memo, it’s worth asking why Sea is doing this now. Does it signal trouble in its ecommerce business, as one analyst suggests? Or does the company have an edge in enterprise cloud that the market has yet to recognize?

I explore these questions and more in today’s top story.

Elsewhere, layoffs are hitting Australian tech firms in quick succession. A day after Canva had announced its restructuring, AI medical software firm Heidi Health said that it’s cutting 18% of its workforce, citing volatile sales and intensifying competition in the US.

It’s a sharp turn for the tech unicorn, which raised US$140 million just two months ago, and a reminder of how quickly fortunes can shift in the AI industry.

Melissa Goh, senior editor

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Top Story

Is it a neocloud? A hyperscaler? Sea’s AI move puzzles investors

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