Link: Nvidia, Microsoft Invest In Southeast Asia's $60 Billion AI Boom - Bloomberg

Southeast Asia is quickly becoming a focal point for AI investments from global giants like Nvidia and Microsoft, yet the region's startups struggle to reap the benefits. Despite a proposed investment of $60 billion by multinational companies, local AI ventures are only seeing a fraction of that, receiving $1.7 billion out of the broader Asia-Pacific's $20 billion funding.

Out of the 1,845 AI funding deals in the Asia-Pacific in 2024, only 122 occurred in Southeast Asia. This stark disparity highlights the emerging market's difficulty in nurturing a robust private sector capable of contending on the global AI stage.

Venture capitalists remain hesitant to invest in Southeast Asia's AI startups, focusing primarily on established markets like the US and China. The US attracted $68.5 billion in AI-related investments in 2024, overshadowing Southeast Asia's efforts.

Local governments are attempting to accelerate AI development by implementing national AI frameworks and providing support, but inter-country collaboration remains minimal. This lack of coordination complicates the creation of unified market strategies essential for regional AI ventures to succeed.

Despite setbacks, some success stories emerge from the region, with companies like Singapore's Patsnap Pte gaining traction by focusing on foundational data management essential for AI development. Such initiatives suggest a potential pathway for Southeast Asian firms to establish a foothold in the AI sector.

The broader digital economy in Southeast Asia is expanding rapidly, driven by a burgeoning middle class and growing internet connectivity. This growth presents a significant opportunity for AI development if regional disparities and investment challenges can be effectively managed. #

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