Issue #65 of Data+AI in Asia

Welcome to this week’s Data+AI in Asia! This edition covers how the US plans to curb AI chip exports to Malaysia and Thailand, Asian game developers incorporate AI in games to improve user experiences, China’s BetterYeah AI attracts US$14 million in funding, Singapore company gets caught posting fake AI-generated reviews, Alibaba continues to expand in Southeast Asia, AI Hay in Vietnam gets US$10 million in funding, and South Korea focuses efforts on AI sovereignty.

Enjoy!

This week in Data+AI in Asia:

• The US Plans to Curb AI Chip Exports to Malaysia and Thailand

• Asian Game Developers Use AI for Better User Experiences

• Chinese AI Agent Startup BetterYeah AI Secures US$14m in Funding

• Singapore Company Posts Fake AI-Generated Reviews to Boost Its Brand

• Alibaba Cloud Continues to Expand in Southeast Asia

• Vietnamese Startup AI Hay Raises US$10m in Series A Round

• South Korea’s Effort to Develop State-Led AI Sovereignty

The US Plans to Curb AI Chip Exports to Malaysia and Thailand

It has been reported that the Trump administration is preparing new AI chip export restrictions targeting Malaysia and Thailand due to concerns about semiconductor smuggling to China. The proposed measures would add the two Southeast Asian nations to existing export control frameworks amid investigations into potential chip diversion schemes. A draft rule from the Commerce Department seeks to prevent China from obtaining components through intermediaries in the two Southeast Asian nations. If proven true, the proposed AI chip export restrictions would mark the first formal step in Trump's promised overhaul of his predecessor's semiconductor trade policies. These potential restrictions come as Malaysia has emerged as an important hub for global technology investments. Companies such as Oracle, Google, Microsoft, and Amazon have committed a combined investment of US$16.9 billion through 2038 in Malaysia’s digital infrastructure. Trade data shows that chip shipments to Malaysia have increased significantly in recent months, and US officials worry about the potential diversion of advanced semiconductors to China. The proposed AI chip export restrictions would include several measures to ease pressure on companies with significant operations in the region. One provision would allow firms headquartered in the US and a few dozen friendly nations to continue shipping AI chips to both countries without seeking a license for a few months after the rule is announced. The proposed restrictions underscore the broader geopolitical tensions surrounding AI technology and export controls. By potentially restricting two countries that have become key destinations for US tech investment, Washington may push partners in the region toward alternative suppliers and technologies.

Read more here

And here

Asian Game Developers Use AI for Better User Experiences

Video game developers in Asia are embracing AI technologies to enhance user experiences. South Korea's Krafton, the country’s largest game developer by market value, has integrated a small language model (SLM) into its simulation game, allowing characters to respond naturally to various situations. The game runs on users' computers to save costs and energy, compressing large amounts of data. Chipmaker Nvidia helped Krafton resolve technical challenges. Novaserene, a Beijing-based startup, is integrating AI into its games, allowing non-player characters (NPCs) to respond to the virtual environment like real humans. This complex interactivity was nearly impossible to simulate with logic-based coding but is increasingly becoming a reality with AI technology. Novaserene joins leading Chinese game developers in the race to adopt AI technology, a development that has accelerated after DeepSeek boosted confidence in using homegrown AI for various applications. NetEase has introduced NPCs powered by DeepSeek and other AI models in its multiplayer game Sword of Justice. However, the race to apply AI to games may change, as AI features may become commonplace for major new titles, and the cost savings from generative AI are currently limited.

Read more here (paywall)

Chinese AI Agent Startup BetterYeah AI Secures US$14m in Funding

BetterYeah AI, a Hangzhou-based AI start-up, has secured over $100 million from investors. The funding is the largest single investment deal in the AI agent market so far. BetterYeah AI develops enterprise AI agents that streamline office operations and management, such as online client services. The fundraising round was led by Alibaba Group Holding’s cloud unit. Alibaba aims to become a leading provider of enterprise AI services in China, particularly for small businesses. BetterYeah claims it has served nearly 100,000 enterprise teams so far, with notable clients including Lenovo Group and Supor. The startup plans to unveil a "new-generation corporate AI agent platform" in the third quarter to create "better digital colleagues." The global AI agent market is expected to grow to around $236 billion by 2034, up from an estimated US$8 billion in 2025.

Read more here (paywall)

Singapore Company Posts Fake AI-Generated Reviews to Boost Its Brand

Singapore's Competition and Consumer Commission of Singapore (CCCS) has found that a car detailing company, Lambency Detailing, has admitted to posting AI-generated five-star reviews on the car listing website Sgcarmart. The company Quantum Globe, which owns and operates Lambency Detailing, admitted to submitting the false reviews. The reviews were submitted through a QR code provided by Sgcarmart, allowing users to submit feedback without an account on the car listing website, Facebook, or Google. The company has agreed to set up a channel to allow customers to report fake reviews for six months and publish notices on Sgcarmart and other online platforms. Quantum Globe is exploring additional verification measures to improve the integrity and authenticity of reviews. The head of the CCCS has stated that this was the second case of fake reviews the commission had come across.

Read more here

And here

Alibaba Cloud Continues to Expand in Southeast Asia

Alibaba Cloud, the cloud computing services and AI arm of Alibaba Group Holding, has announced plans to launch new data centers in Malaysia and the Philippines to meet the growing demand for AI in the region. The company has committed to investing at least US$53 billion in AI infrastructure over the next three years. This will be the third data center in Malaysia and the second in the Philippines. Similar plans were announced for Thailand and South Korea earlier this year. Southeast Asia has become a key battleground for China’s big tech companies. The expansion in the region comes after the closure of data centers in Sydney and Mumbai last year. Alibaba also announced its inaugural AI Global Competency Centre (AIGCC) in Singapore. AIGCC is a multifunctional hub aimed at expediting AI adoption and supporting enterprises of all sizes. The company plans to partner with over 120 universities and institutions to train 100,000 AI professionals annually. 

Read more here (paywall)

Vietnamese Startup AI Hay Raises US$10m in Series A Round

In a Series-A fundraising round headed by Argor Capital, the AI startup AI Hay, based in Vietnam, has raised $10 million. Investors Square Peg, Northstar Ventures, AppWorks, and Phoenix Holdings participated in the round. AI Hay is a generative AI platform that offers local information, contextual responses, and a community of peers and experts. Since March 2024, the app has been downloaded 15 million times and provides monthly solutions to more than 100 million enquiries. The application leverages generative AI to provide accurate, well-cited answers tailored to Vietnam’s language and culture. AI Hay intends to use the additional funding to build new features, broaden its online platform, and further incorporate AI into entertainment and education. To make AI more accessible for regular Vietnamese users, the company is also developing intelligent, practical AI assistants.

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And here

South Korea’s Effort to Develop State-Led AI Sovereignty

An interesting piece in The Diplomat explores how South Korea's new Lee Jae-myung administration has prioritized establishing the country as a global AI leader, announcing the appointment of Ha Jung-woo as its first-ever presidential chief AI adviser and Bae Kyung-hoon as the new minister of science and ICT. These appointments are backed by a 100 trillion won national investment plan, indicating a focus on practical execution over symbolism. South Korea's sovereign AI is defined as securing capabilities and initiative across the entire AI industry value chain and ecosystem, from semiconductors to data centers and cloud services. The authors argue that the shift towards AI autonomy in South Korea is a high-stakes experiment in an age of China-US AI rivalry. The first wave of this shift began in late 2022 with OpenAI's ChatGPT, prompting South Korea's tech giants to develop their own LLMs. However, the push for sovereignty faced challenges, including the dominant global AI discourse, Korean public skepticism, and the concept of sovereign AI representing specific corporate interests. South Korea's Chief AI Officer, Ha Jung-woo, has emphasized the importance of sovereign AI in the 21st century. He believes that South Korea has the potential to create a frontier AI cost-effectively. South Korea's vision for sovereign AI is rooted in its significant tech capabilities and the geopolitical realities of the 21st century. Ha defines sovereign AI as liberation from technological dependency, securing AI systems that align with the nation's language, culture, laws, and social values. He warns that AI will become the primary tool of 21st-century "neo-imperialism," and argues for a proactive global strategy called the Third Way. This involves partnering with nations in the Middle East, Southeast Asia, and beyond to build their own sovereign AI. South Korea’s progress will be watched closely as it represents a possible way forward for middle powers that seek a path between the US and China’s spheres of influence.

Read more here