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<h3>Finmo raises Series A funding to expand treasury management platform</h3>
Finmo, a treasury operating system provider, has raised USD 18.5 million in an oversubscribed Series A funding round, bringing its total funding to USD 27 million. The round was co-led by Quona Capital and PayPal Ventures, with participation from Citi Ventures.
The company plans to use the fresh capital to accelerate product development, enhance its artificial intelligence capabilities, and expand its global footprint.
Finmo offers a unified platform designed to streamline payment processes, improve cash flow visibility, manage foreign exchange risks, automate treasury tasks, and optimize liquidity management.
<h3>Giftaway secures investment from Aura Private Equity to scale digital rewards platform</h3>
Global Incentive Solutions, the parent company of <a href="https://giftaway.ph/">Giftaway</a>, has secured AUD 28.5 million (USD 18 million) from Aura Private Equity and co-investors. The capital will support Giftaway’s expansion efforts and strengthen its role in driving financial inclusion across Southeast Asia.
Giftaway operates a digital rewards and incentives platform that facilitates digital voucher solutions for customer and employee engagement, with a significant portion of its clientele in the financial sector.
The company intends to use the investment to scale operations, expand its merchant network, and enhance its platform to meet growing regional demand.
<h3>HD raises USD 7.8 million to expand healthcare marketplace in Southeast Asia</h3>
HD, a healthcare marketplace in Thailand, has raised USD 7.8 million in equity funding to enhance its platform and invest further in AI technology, <a href="https://techcrunch.com/2025/02/12/merck-backs-healthcare-marketplace-hd-in-southeast-asia/">TechCrunch</a> reported. The round included participation from MSD, SBI Ven Capital, M Venture Partners, FEBE Ventures, and Partech Partners.
HD operates HDmall, a digital healthcare platform that connects users with hospitals and clinics for surgeries, health checkups, and treatments while offering installment payment options. The platform aggregates medical services to lower costs and improve accessibility.
With this funding, the startup aims to expand its network to 5,000 providers and 600,000 patients by 2025.
HD has also introduced Jib AI, a chatbot trained on healthcare transaction data to enhance patient interactions. Over the next year, the company plans to expand Jib AI’s capabilities to include scheduling, refunds, and AI-powered virtual care while strengthening partnerships with insurance firms, pharmaceutical companies, and employers.
<h3>Hex Trust acquires Byte Trading to expand institutional digital asset services</h3>
Hex Trust, a provider of digital asset financial services, has acquired Byte Trading, bolstering its position as a full-service financial institution for institutional investors.
The acquisition will integrate Byte Trading’s low-latency trading platform into Hex Trust’s regulated infrastructure, enhancing execution and prime services.
Hex Trust plans to continue expanding its capabilities and institutional market reach, with further acquisitions expected throughout 2025.
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<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">Feylyly, a women’s sportswear brand, has raised a seven-figure RMB sum in seed funding from Deju Investment, a fund under X Group. The fresh capital will be used to build out its supply chain, expand distribution channels, and grow its team. Founded in 2022, Feylyly targets women aged 35–45 in first- to third-tier cities and offers apparel, gear, and footwear, among other products. —<a href="https://36kr.com/p/3165064053795329">36Kr</a></li>
<li aria-level="1"><a href="https://www.buddybuzzy.com/#/home">Buddy Buzzy</a>, a mom-and-baby technology brand, has secured a new funding round in the hundreds of millions of RMB. The round was led by a Hangzhou state-owned industrial fund, with participation from existing investor PGA Capital. The capital will support product R&amp;D, ecosystem development, brand expansion, and the construction of a production facility. —<a href="https://36kr.com/p/3160222560803333">36Kr</a></li>
<li aria-level="1"><a href="https://www.linkzill.com/en/">LinkZill</a>, a Hangzhou-based life sciences company, has raised an eight-figure RMB sum in a Series A funding round from Proxima Ventures. The investment will be used to accelerate product delivery and support global expansion. Founded in 2019, LinkZill applies thin-film transistor (TFT) semiconductor technology to DNA synthesis and related applications. —<a href="https://36kr.com/p/3164434036861698">36Kr</a></li>
<li aria-level="1"><a href="https://www.nanosmedical.com/en.html">Nanos Medical</a>, a medtech firm specializing in otolaryngology and craniospinal surgery devices, has closed a funding round, raising over RMB 300 million (USD 42 million). Qiming Venture Partners led the round, with support from Riverhead Capital. Poseidon Hill Capital served as the financial advisor. The company will allocate the funds toward market expansion and product development. —<a href="https://36kr.com/p/3164858080586499">36Kr</a></li>
</ul>
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<h3>ArmourZero, Klook, Tabby, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.armourzero.com/">ArmourZero</a>, a Malaysia-based cybersecurity company, raised an undisclosed investment from Gobi Partners through its Gobi Dana Impak Ventures (GDIV) fund, backed by Khazanah Nasional Berhad.</li>
<li aria-level="1">Klook, one of Asia Pacific’s leading travel experience platforms, <a href="https://kr-asia.com/klook-raises-usd-100-million-to-fuel-ai-driven-travel-expansion-across-apac">secured USD 100 million in fresh funding</a> led by Vitruvian Partners.</li>
<li aria-level="1">Tabby, a buy now, pay later (BNPL) fintech company, raised USD 160 million in a Series E funding round. The round was co-led by existing investors Blue Pool Capital and Hassana Investment Company, with participation from STV and Wellington Management.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Finmo’s Series A round hits oversubscription, Giftaway and HD raise fresh capital, latest China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Thailand

Philippines

Hong Kong

Gucci’s downturn extended into the final stretch of 2024, with fourth-quarter revenue falling 24%, closing out a year in which sales at Kering’s flagship brand dropped 23% to EUR 7.7 billion (USD 8 billion). The decline, which has now persisted for four consecutive quarters, has placed significant strain on its parent company.
According to its latest earnings report, Kering’s annual revenue fell 12% to EUR 17.2 billion (USD 17.9 billion), while net profit plunged 62% to EUR 1.1 billion (USD 1.1 billion). Recurring operating profit slid 46%, reaching its lowest level since 2016. Despite deteriorating margins, the company has proposed a EUR 6 (USD 6.2) per share dividend payout, signaling its intent to maintain shareholder returns.
François-Henri Pinault, Kering’s CEO, acknowledged that while the company anticipated challenges in 2024, “things have been even tougher than what [the group] had foreseen” throughout the year.
Gucci, once Kering’s primary growth driver, posted double-digit revenue declines in every quarter of 2024—down 21% in Q1, 20% in Q2, 25% in Q3, and 24% in Q4. The brand’s inability to stabilize its sales trajectory dragged Kering’s overall performance, with total Gucci revenue for 2024 falling to EUR 7.7 billion (USD 8 billion), its lowest in years.
Other Kering brands also struggled. Yves Saint Laurent’s revenue declined 9% to EUR 2.9 billion (USD 3 billion), as slowing demand in the US and a weaker aspirational customer base weighed on sales. Meanwhile, Bottega Veneta bucked the trend, posting a 4% increase in revenue to EUR 1.7 billion (USD 1.8 billion), driven by strong demand for high-end leather goods.
Adding to Kering’s challenges, its stock price plummeted more than 40% over the course of 2024, nearly halving its market value as investors questioned the company’s ability to revive Gucci’s momentum.
Gucci’s prolonged decline prompted a leadership overhaul. Sabato De Sarno, appointed as creative director in 2023, exited the brand earlier this year after failing to reignite consumer demand. His tenure was defined by the introduction of Rosso Ancora, a deep red hue positioned as Gucci’s signature color—a move intended to reinforce the brand’s identity in the market.
Luxury houses often use distinct colors to solidify their image—Hermes has orange, Tiffany has its signature blue—and De Sarno sought to establish Rosso Ancora, a deep red hue, in a similar fashion. Gucci rolled out the initiative with immersive pop-up spaces in China, targeting shoppers in Shanghai, Shenzhen, Chengdu, and Beijing. But the strategy failed to generate lasting traction.
<figure id="attachment_152000" aria-describedby="caption-attachment-152000" style="width: 540px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-152000" src="https://console.kr-asia.com/wp-content/uploads/2025/02/Gucci-Sabato-De-Sarno-864x1024.jpg" alt="Photo of Sabato De Sarno, former Gucci creative director, who led the introduction of the Rosso Ancora hue." width="540" height="640" srcset="https://console.kr-asia.com/wp-content/uploads/2025/02/Gucci-Sabato-De-Sarno-864x1024.jpg 864w, https://console.kr-asia.com/wp-content/uploads/2025/02/Gucci-Sabato-De-Sarno-253x300.jpg 253w, https://console.kr-asia.com/wp-content/uploads/2025/02/Gucci-Sabato-De-Sarno-768x910.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/02/Gucci-Sabato-De-Sarno.jpg 1080w" sizes="(max-width: 540px) 100vw, 540px" /><figcaption id="caption-attachment-152000" class="wp-caption-text">Photo of Sabato De Sarno, former Gucci creative director, who led the introduction of the Rosso Ancora hue. Photo and header photo source: Gucci.</figcaption></figure>
Kering is now setting its sights on a year of stabilization, with muted revenue expectations in the near term. Gucci’s latest handbag launches—the Emblem, Bee, and Blondie collections—have shown early signs of interest, but they have yet to offset declining sales in established lines such as Marmont and Dionysus.
During the earnings call, Pinault made clear that Kering is not seeking “short-term compromises or quick fixes” for Gucci. The brand’s immediate priority is rationalizing its wholesale operations, which includes scaling back its presence in outlet stores and cutting wholesale distribution further this year. The objective is to regain pricing power and exclusivity while reinforcing direct retail sales.
Gucci is also expected to announce a new artistic director in the coming months, marking another phase in its turnaround. But with economic uncertainty weighing on the luxury sector and demand slowing in key markets such as China, Kering faces a difficult balancing act: restoring Gucci’s desirability without undermining its profitability.

Gucci’s new signature is red—and so are its financials as sales bleed

Fashion

Creative

Retail

Consumer Services

… https://console.kr-asia.com/wp-content/uploads/2025/02/AC-Ventures-Australian-Development-Investments-Kinetik-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2025/02/AC-Ventures-Australian-Development-Investments-Kinetik.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151995" class="wp-caption-text">Photo courtesy of AC Ventures.</figcaption></figure>
<h3>Atome Financial secures USD 80 million with backing from BlackRock and InnoVen Capital</h3>
Atome Financial, the fintech arm of Advance Intelligence Group, has expanded its senior secured term loan facility to USD 80 million with new commitments from a private credit fund managed by BlackRock and venture debt provider InnoVen Capital. The new tranche builds on the facility’s original USD 80 million funding from EvolutionX Debt Capital in June 2024.
Atome Financial, which operates the BNPL platform Atome and Indonesia’s digital lending platform Kredit Pintar, reported strong growth in 2024, with increases in revenue and gross merchandise value. The company also achieved full-year profitability.
The additional capital will support product expansion, strategic partnerships, and growth across Singapore, Malaysia, the Philippines, and Indonesia.
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<h3>Tabby raises Series E funding ahead of IPO plans</h3>
Tabby, a buy now, pay later (BNPL) fintech company, has raised USD 160 million in a Series E funding round, bringing its valuation to USD 3.3 billion. The round was co-led by existing investors Blue Pool Capital and Hassana Investment Company, with participation from STV and Wellington Management.
The fresh capital will support Tabby’s expansion into digital spending accounts, payments, cards, and money management tools, aligning with Saudi Arabia’s Vision 2030 goal of promoting a cashless economy. The financing also strengthens Tabby’s position as it prepares for an initial public offering.
This funding follows Tabby’s recent acquisition of Tweeq, a Saudi digital wallet startup, expanding its financial services portfolio. The company primarily serves the Middle East and North Africa (MENA) region.
<h3>Saudi’s Neom invests in BCI technology firm Paradromics</h3>
<a href="https://www.paradromics.com/">Paradromics</a>, a brain-computer interface (BCI) technology firm, has received an undisclosed investment from the Neom Investment Fund (NIF), the investment arm of Saudi Arabia’s Neom project. The partnership will accelerate the development of BCI-based therapies aimed at restoring and enhancing neurological function.
As part of the agreement, a research and clinical facility will be established within Neom to focus on healthcare applications for BCI technology. Paradromics’ first application will target restoring communication for individuals with ALS, stroke, and spinal cord injuries. Future applications may address mental health conditions, including mood disorders and chronic pain.
<figure id="attachment_151993" aria-describedby="caption-attachment-151993" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-151993" src="https://console.kr-asia.com/wp-content/uploads/2025/02/Paradromics-Cortical-Module-1024x683.jpg" alt="Photo of a cortical module developed by Paradromics. This implantable device is designed to record individual brain signals and translate thoughts into actions." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2025/02/Paradromics-Cortical-Module-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/02/Paradromics-Cortical-Module-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/02/Paradromics-Cortical-Module-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/02/Paradromics-Cortical-Module-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/02/Paradromics-Cortical-Module.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151993" class="wp-caption-text">Photo of a cortical module developed by Paradromics. This implantable device is designed to record individual brain signals and translate thoughts into actions. Photo courtesy of Paradromics.</figcaption></figure>
<h3>Hex Trust secures funding in round led by Morgan Creek Digital</h3>
Hex Trust, a digital asset custodian, has secured an undisclosed amount in a funding round led by Morgan Creek Digital, with participation from Injective and other investors. To date, Hex Trust has raised over USD 100 million, and this latest investment sets the stage for its anticipated Series C round later this year.
Founded in 2018, Hex Trust provides licensed custody, staking, markets, and investment solutions to banks, financial institutions, and asset managers. It operates in multiple markets, including Hong Kong, Singapore, Dubai, France, and Italy.
The new funding will be used to expand Hex Trust’s staking and markets businesses, explore acquisitions, and strengthen its institutional digital asset custody solutions.
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<h3>East Ventures, Payd, Carsome, and more made recent headlines:</h3>
<ul>
<li aria-level="1">East Ventures and SV Investment announced the first close of their joint interregional fund, backed by Korea Development Bank (KDB) and an undisclosed global neobank. The fund is expected to reach its final close by mid-2025.</li>
<li aria-level="1">Payd, a Malaysian fintech startup, raised a USD 400,000 seed extension from A2D Ventures, Orbit Startups, and AngelSpark.</li>
<li aria-level="1">Carsome, a Malaysia-based car e-commerce platform, ceded a 49% stake in its financing arm, Carsome Capital, to Japan Consumer Credit Service (JACCS). The deal establishes a joint venture aimed at serving underserved segments in Malaysia, with Carsome retaining a 51% majority share.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Gobi Partners backs Malaysia’s ArmourZero, Klook secures USD 100 million, ADI anchors AC Ventures’ climate fund, and more

Malaysia

Indonesia

Saudi Arabia

Australia

Oceania

… that was originally published by 36Kr. This <a href="https://36kr.com/p/3162919288515333">article</a> was written by Ren Cairu for 36Kr.

Klook raises USD 100 million to fuel AI-driven travel expansion across APAC

Transportation

Travel

Mobility

Vietnam

… can enhance the influence of our brand," Qin Jie, operations director for Bilibili Gaming, told Nikkei Asia.
In Tencent's last quarterly earnings call with analysts, chief strategy officer James Mitchell said the success of Chinese team EDward Gaming in winning the global championship for Valorant, a game developed by US subsidiary Riot Games, was "attracting new players and boosting sales of esports-themed items." This swelled gross receipts and daily active users for the game, released in 2020, to a record level, he said.
In stepping up its push into Southeast Asia, where esports revenues were only one-sixth the size of China's in 2022 by Niko Partners' calculations, Tencent will be taking on Shanghai Moonton Technology. This studio is owned by TikTok operator <a href="/company/bytedance">ByteDance</a> and was co-founded by a former Tencent gaming employee.
Due in part to those origins, Tencent and Riot Games have brawled with Moonton in the courts for years. The trio, though, account for the two games at the center of all five of the most streamed esports tournaments in 2024: Riot's League of Legends and Moonton's Mobile Legends: Bang Bang.
The two top Mobile Legends events of 2024 were both held in Southeast Asia, the top market for the game which was designed to run on the less advanced smartphones prevalent in the region.
"I can go shopping now for whatever I want," gamer Duane "Kelra" Pillas told Philippine reporters in December 2024 after his team Fnatic ONIC PH won the USD 320,000 top prize in the Mobile Legends: Bang Bang World Championship in Kuala Lumpur. "I have no plans yet on where to spend my money, but if I could buy land, that's what I would do."
Team Vitality, a French esports group, recently acquired ownership of a team of Indonesian female Mobile Legends players. Amelie Canet, the group's fan activities director, said it was "like entering a new business."
"It's not the same way to play," she said. "It's not the same fan base. Everything is different," Canet added, stressing that social media followers are far more numerous than in Europe.
Though originally published in 2016, Mobile Legends was still the top grossing gaming app in Southeast Asia over the first eight months of 2024, according to Sensor Tower. This coming December, it will be featured in the Southeast Asian Games in Thailand. Recently, seeking to widen its player base, Moonton <a href="https://asia.nikkei.com/Business/Media-Entertainment/ByteDance-to-launch-Mobile-Legends-game-in-China-to-challenge-Tencent" target="_blank" rel="noopener">released the game in China</a> after racking up more than ten million preorders.
Like Tencent, top Chinese gaming rival NetEase has enjoyed particular esports success domestically, which it plans to mark with a RMB 5 billion (USD 700 million) esports complex nearing completion in Shanghai. Esports tournaments based on NetEase titles are also spreading internationally.
In terms of prize money, the most lucrative event it organized in 2024, the Naraka: Bladepoint World Championship, featured teams from Europe, North America, and Southeast Asia, alongside Chinese squads. Another, the Call of the Abyss series for Identity V, has caught on with teams from Japan and South Korea. Mihoyo, the Shanghai-based startup developer of the game Genshin Impact, has been working to build esports events overseas around its flagship title as well.
At the same time, foreign game publishers are striking back by bringing their own esports events to China. In December 2024, Valve, the US publisher of the top two esports games by prize money in 2024, held a major tournament for its Counter-Strike 2 game in Shanghai in cooperation with Chinese gaming company Perfect World, drawing 70,000 spectators.
"The audiences in China are very good, and we always felt supported," Sergey Shavayev, coach of tournament winners Team Spirit, told reporters. "We were warmly greeted. So thanks, China."
While esports events undoubtedly reinforce interest in featured games, it is unclear just how much of a financial boost Chinese game companies are getting from their involvement in professional tournaments. In Tencent's last annual report, there was only one passing mention of esports across 280 pages, in a discussion about Huya.
A major challenge for the esports industry is getting the games' young, social media-savvy fans to spend more. Chinese fans could stream the Honor of Kings Championship Grand Finals in Beijing, for example, free of charge.
Around 261 million people worldwide watched esports multiple times a month in 2022, according to Dutch research company Newzoo. But each spent only USD 5.30, on average, on their passion over the course of the year.
Such numbers likely played into the calculus of <a href="/company/alibaba">Alibaba Group</a>, Tencent's biggest overall rival, in pulling back from esports. At the peak of its enthusiasm, Alibaba pledged to put RMB 1 billion (USD 140 million) into professional gaming, launched its own annual global tournament (the World Electronic Sports Games) and succeeded in getting esports upgraded to a medal event in the plans for the Asian Games, originally to be held in 2022 in its hometown, Hangzhou.
No World Electronic Sports Games (WESG) events, however, have been held since the cancelation of the league's Asia Pacific and global finals in early 2020 due to Covid-19. Alibaba's esports unit has all but disappeared. An Alibaba spokesperson declined to comment on whether the company-backed tournament will ever be held again.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Big-in-Asia/Chinese-companies-face-growth-limits-in-world-s-biggest-esports-market" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

Chinese companies face growth limits in world's biggest esports market

Tencent

NetEase

East Asia

Entertainment

Gaming

Chinese fintech giant Ant International has officially opened its first Middle East office in Riyadh, marking a significant step in its global expansion. The move follows its certification from the Saudi Central Bank (SAMA), granting it approval to operate in Saudi Arabia’s fintech ecosystem.
With this launch, Ant International joins a growing wave of Chinese companies establishing a physical presence in the Middle East, highlighting deepening economic ties between the two regions. In 2024, Cotti Coffee, founded by former Luckin Coffee executives, <a href="https://kr-asia.com/chinese-coffee-brands-set-sights-on-middle-east-as-next-big-market">launched its first Middle Eastern store in Dubai</a>, tapping into the region’s growing cafe culture. The same year, Meituan introduced Keeta, its food delivery platform, <a href="https://kr-asia.com/meituans-keeta-launches-in-saudi-arabia-igniting-competition-and-price-hikes">in Riyadh</a>, aiming to compete in the kingdom’s on-demand delivery sector.
As part of its expansion, Ant International is introducing Antom to Saudi merchants, acquirers, and e-commerce businesses. Set to launch locally this year, Antom is a unified digital payment platform that supports multiple payment methods, including credit and debit cards, online banking, and digital wallets. Designed for cross-border transactions, it reportedly handles over 100 currencies, improving payment efficiency for merchants with international operations.
Ant International’s entry into Saudi Arabia aligns with SAMA’s fintech innovation agenda and is seen as a potential enabler of Saudi Arabia’s Vision 2030 goals. A core focus will be empowering small and medium enterprises, a key driver of the kingdom’s economic growth, by providing them with relevant digital payment solutions.
“The opening of our Riyadh office represents a significant milestone for Ant International in the Middle East, and strong commitment from Ant International to contribute to the economic growth of the kingdom of Saudi Arabia,” said Leiming Chen, senior vice president and chief sustainability officer of Ant International.
Beyond payments, Antom will introduce a suite of technologies to the Saudi market. Ant International has confirmed that Antom will leverage artificial intelligence for payment orchestration, merchant services, and security measures. These capabilities aim to reduce costs, enhance transaction security, and streamline foreign exchange risk management.
Merchants using Antom will also gain access to digital marketing tools and privacy computing solutions, helping them refine customer targeting strategies.
With global fintech firms like Ant International setting up in Riyadh, Saudi Arabia is quickly positioning itself as a regional fintech hub alongside Dubai. The Middle East’s supportive regulatory environment and strategic position as a gateway to global markets have made it an increasingly attractive destination for international expansion.
“We greatly value the dynamic payments market in Saudi Arabia, shaped by SAMA’s progressive policies and the kingdom’s vibrant economy, which provide an excellent environment for innovation and sustainable growth,” Chen said.

Ant International sets up in Riyadh, bringing Antom to Saudi businesses

Ant Group

Fintech

Payments

<a href="/company/baidu">Baidu</a> CEO Robin Li has warned that artificial intelligence is evolving at an unprecedented pace, making continued investment in computing infrastructure critical for companies looking to stay ahead. Speaking at the World Governments Summit in Dubai, Li highlighted a dramatic reduction in AI inference costs over the past year, underscoring the need for sustained funding in silicon, cloud computing, and data centers. Despite AI’s rapid development, he noted that the industry still lacks a dominant consumer-facing application that warrants the scale of investment seen so far.
Li’s remarks come as Baidu competes with Tencent, Alibaba, and other Chinese tech giants to shape the country’s AI agenda. Meanwhile, US firms such as OpenAI, Google, and Tesla are pushing AI innovation into mainstream applications. While companies worldwide continue pouring resources into the technology, Li pointed to an unresolved dilemma: AI is becoming cheaper and more powerful, but the business case for massive infrastructure spending remains uncertain.
The core of Li’s argument is that foundation models—the backbone of generative AI—are advancing at a pace that defies Moore’s law. Over the past year, the cost of running AI models has reportedly fallen by more than 90%, making the technology more economically viable and accessible. Lower costs have spurred higher productivity, with AI increasingly replacing human-driven processes. But cost efficiency alone, Li argued, does not justify continued spending.
“When technology evolves at such a rapid rate, you just cannot stop investing,” he said. “You have to invest to make sure that you are at the very front of this technological innovation or revolution.”
Even so, Li acknowledged that AI still lacks a flagship application capable of generating returns proportional to the billions being spent on hardware and infrastructure. “If we invest at this scale but fail to build applications that deliver ten times the return, it won’t be sustainable,” he said. While chatbots and automation tools have gained traction, none have achieved the level of engagement seen on platforms such as Facebook or WeChat, which maintain high active user ratios. “The world is anxiously looking for this kind of superapp at this stage,” he added.
Baidu is betting that autonomous driving will be one of AI’s first breakthrough commercial applications. Its Apollo Go robotaxi service is said to have completed 8 million rides across 11 Chinese cities, including Wuhan, where a fleet of more than 400 vehicles operates round the clock. Li said autonomous vehicles could dramatically reduce global road fatalities, citing Baidu’s data indicating that its robotaxis are ten times safer than human-driven cars, with an insurance claims rate one-fourteenth that of regular taxis.
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Baidu recently <a href="https://kr-asia.com/hong-kong-opens-roads-to-self-driving-cars-with-baidu-apollo-pilot">secured Hong Kong’s first autonomous driving pilot license</a>, marking its first regulatory approval outside mainland China. The move signals the company’s ability to deploy AI models in right-hand drive, left-hand traffic markets—an essential step for global expansion.
Li’s comments come as China’s AI sector faces increasing regulatory scrutiny. While Beijing has designated AI as a national strategic priority, authorities have tightened oversight on AI-generated content and data security. Unlike the US, where AI development is largely industry-led, China’s expansion in the sector remains closely aligned with government directives.
Chinese tech firms, including Baidu, are doubling down on foundation models, but whether these investments will generate sustainable returns remains uncertain. As AI’s capabilities expand and costs decline, the industry faces a pivotal question: will advances in efficiency and automation justify the billions poured into AI infrastructure, or is the technology still searching for its defining breakthrough?

“You just cannot stop investing,” says Baidu’s Robin Li as AI costs plummet

Artificial Intelligence

Deep Tech

Artificial intelligence

<a href="/company/openai">OpenAI</a> CEO Sam Altman has recognized the growing competition posed by Chinese artificial intelligence firm <a href="/company/deepseek">DeepSeek</a>, whose chatbot has matched ChatGPT’s performance in certain areas. However, he downplayed DeepSeek’s research contributions as a major challenge to OpenAI.
“They did some nice work,” Altman said in an interview on <a href="https://podcasts.apple.com/gb/podcast/an-interview-with-sam-altman-co-founder-ceo-of-openai/id1233991021?i=1000690886306">The Times Tech Podcast</a>, released on February 11. He pointed to DeepSeek’s use of chain-of-thought (CoT) prompting as a feature that resonated with users but emphasized that it did not constitute a breakthrough from a research perspective.
DeepSeek’s meteoric rise has had an immediate impact on the AI sector, notably <a href="https://kr-asia.com/deepseeks-r1-sparks-global-ai-upheaval-with-low-cost-brilliance">causing a dip in US tech stocks</a> when it entered the spotlight. Unlike OpenAI, which has invested billions in AI development, DeepSeek’s models were reportedly built at a fraction of that cost. This efficiency has sparked discussions about whether industry leaders like OpenAI could face serious competition from lower-cost alternatives.
While Altman admitted the timing of DeepSeek’s emergence caught him off guard, he insisted OpenAI was prepared for growing competition.
“We knew that at some point, we would get more serious competitors and models that were very capable,” he said. “But you don’t know when you wake up any given morning that that’s going to be the morning.”
Altman’s comments came as global leaders, tech executives, and researchers convened in Paris for the AI Action Summit, an event hosted by French President Emmanuel Macron. The summit aimed to establish common ground on AI governance, safety, and ethics.
Addressing concerns about AI development in different geopolitical contexts, Altman noted that regional variations were inevitable.
“You can imagine a sort of hierarchy of what AI has to do globally, […] what AI has to do with this country, this country, and then individual users,” he said.
He also raised the question of whether AI would trend toward more authoritarian control or a democratic, user-empowering model, stating that he preferred the latter.
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While DeepSeek’s presence in AI is growing, its role in global AI governance remains uncertain. Media reports suggested DeepSeek founder Liang Wenfeng was invited to the summit for his technical achievements. However, sources close to the company told iFeng Technology (Phoenix New Media) that neither Liang nor any DeepSeek representatives attended.
Their absence has left questions about DeepSeek’s stance on international AI governance and whether it intends to participate in shaping industry regulations.
Neither OpenAI nor DeepSeek has commented further on the prospect of direct competition between the two firms.

OpenAI’s Sam Altman weighs in on DeepSeek, says it did “nice work”

OpenAI

Artificial intelligence-related investments have helped Japan's manufacturing industry enter a recovery, with the sector posting an 8% year-on-year net profit increase in the April-December 2024 period after a 6% decrease in April-September.
Nikkei compiled data from 331 manufacturing companies, excluding subsidiaries of listed parent companies, that had announced their results for the April-December 2024 period as of February 7. They account for 70% of manufacturing companies that have fiscal years ending in March, or 80% by market capitalization.
More than half the companies, 59%, posted profit increases, up 5 percentage points year-on-year and exceeding 50% for the second consecutive year.
Benefits from AI-related investments are spreading, particularly in the semiconductor material field. Food and biotech company Ajinomoto posted record high profits in April-December on strong sales of insulating materials, in which it controls a large market share.
Chemical group Asahi Kasei recorded a 68% increase in net profit on strong sales of plastics used in chipmaking. Sumitomo Chemical increased sales in cleaning chemicals used in chipmaking, while Sekisui Chemical was boosted by tapes for securing substrates.
The spread of generative AI is driving demand for data centers and related power infrastructure equipment. Strong sales of optical devices and power cables lifted profits at Sumitomo Electric.
Mitsubishi Heavy Industries enjoyed growth in gas turbines for power plants, raising its net profit forecast for the year ending March. "We are receiving steady orders even now," said CFO Hisato Kozawa.
Software companies like NEC and Fujitsu tapped into demand from companies in other sectors <a title="" href="https://asia.nikkei.com/Business/Technology/Artificial-intelligence/As-DeepSeek-inspires-AI-underdogs-Japan-software-stocks-surge" target="_blank" rel="noopener">for AI services</a> to help improve efficiency, posting 2.1-fold and 3.5-fold profit increases, respectively.
"The market was concerned about the impact of the economic downturn in China and Europe, but many companies are seeing their performance improve, especially in the areas of AI semiconductors and data centers, so a sense of relief is spreading," said Maki Sawada, a strategist at Nomura Securities.
The weak yen also helped lift profits. The average exchange rate for April-December was about JPY 152 to the dollar, around JPY 9 weaker than the same period in 2023.
This accounted for 40% of Mitsubishi Electric's operating profit increase, or JPY 31 billion (USD 205 million). The figure for TDK was JPY 16.8 billion (USD 111.1 million), about 30% of its total.
Amid the overall solid earnings in manufacturing, the automobile and steel industries are struggling. Mazda Motor announced on Friday that its net profit for the April-December period was down 45% due to intensifying competition in the US and elsewhere that led to increased sales incentives.
Mitsubishi Motors' profits fell by 68% due to worsening profitability in Southeast Asia and the US Toyota Motor, which raised its full-year forecast, recorded a 4% increase in profits in April-December.
For steelmakers, the market worsened due to overproduction by China and declining demand at home and abroad. Nippon Steel profits decreased 18% while JFE Holdings revised its net profit forecast for the year ending March downward.
As of February 7, total net profits of all listed companies for April-December were up 11% year-on-year. In addition to the manufacturing recovery, non-manufacturing industries are also performing well.
"Many companies have revised their forecasts for the year ending March 2025 upward, which is supporting stock prices," said Yugo Tsuboi, chief strategist for Japan and US equities at Daiwa Securities.
The combined net profit forecast of listed companies for the fiscal year is up 4% from last year as of February 7.
This article first appeared on <a href="https://asia.nikkei.com/Business/Business-trends/Japan-manufacturing-rides-AI-boom-to-recovery-with-profits-up-8">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Japan manufacturing rides AI boom to recovery with profits up 8%