IN FOCUS
In today’s newsletter, we look at:
- How the new US chip restrictions may affect SEA’s AI sector
- Why Nvidia needs to sway Washington
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Hi there,
I used to find it intriguing how people could watch soap operas, but I’ve realized that it always boils down to captivating storylines and drama. Lots of drama.
The AI industry has been similarly entertaining and keeps me always looking for the next episode. Every few days I look for the latest news, and it doesn’t disappoint, usually with some new plot twist grabbing everyone’s attention.
Nearly two weeks ago, we were captivated by the DeepSeek saga, which caused the Nasdaq to fall by 3% and AI chip giant Nvidia to lose about US$588 billion in market value. But two weeks is a really long time in the AI news cycle, and Nvidia’s stock has not only bounced back but is expected to surge in the coming days.
DeepSeek’s impact on Nvidia has been largely brushed aside as reports have emerged of the former’s use of restricted, high-end AI chips to train its large language model, although the admission is now causing the US chipmaker trouble in other ways.
The issue of Chinese firms accessing restricted chips has led the US to increase its regulations on AI chip exports even further. In our Big Story this week, my colleague Scott looks at how these new chip restrictions may hinder the AI boom in Southeast Asia.
The chip restrictions are also making stakeholders nervous about the future of AI data centers, which have been growing in the region. Malaysia has invested US$21.7 billion in data centers over the past two years.
Coming back to Nvidia, in this week’s Hot Take, I look at why CEO Jensen Huang exchanged a seat at Trump’s inauguration for a quiet visit to the White House.
– Collin
BIG STORY
Chips stacked against SEA? New rules may hinder AI boom in region
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