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As cars morph into rolling computers, software has become one of the most important—and contested—pieces of the automotive puzzle. Leading China’s new crop of automakers in this race are companies like Nio and <a href="/company/li-auto">Li Auto</a>, which are developing full-stack operating systems to power tomorrow’s smart vehicles.
On March 27, Li Auto took a significant step: its CEO Li Xiang announced the open-sourcing of Halo OS, the company’s in-house automotive operating system, during the Zhongguancun Forum in Beijing. Built on four pillars—smart vehicle control, smart driving, communication middleware, and information security—Halo OS is now available for developers and industry partners.
In a follow-up interview with 36Kr and other media outlets, Li Auto’s CTO Xie Yan shared insights into the system’s origins, architecture, and goals. The effort began back in 2021 with a dedicated team of 200 engineers and an R&amp;D budget exceeding RMB 1 billion (USD 140 million). Halo OS made its debut in Li Auto’s own vehicles in 2024.
Xie is no stranger to operating systems. Before joining Li Auto in mid-2022, he was a key figure at Huawei, where he helped shape HarmonyOS. Prior to that, he led the architecture team behind Alibaba’s AliOS, giving him a front-row seat to China’s OS evolution over the past decade.
When Xie arrived at Li Auto, the global chip shortage—sparked by pandemic-era disruptions—was still wreaking havoc. Semiconductor lead times had ballooned, and prices were spiking. A Bosch ESP chip that normally cost RMB 13 (USD 1.80) was being resold for as much as RMB 4,000 (USD 560) on the gray market.
This volatility forced automakers to diversify their chip suppliers. But adapting to new hardware is a heavy lift—typically taking six months or more. According to Xie, Halo OS slashed that window to just one month. The system’s flexible design allows it to support chips from a range of vendors, effectively future-proofing Li Auto’s supply chain strategy.
As the industry pivots toward cross-domain integration, beefed-up edge computing, and increasingly intelligent systems, Li Auto is repositioning Halo OS to match. At its core are four technical capabilities, one of which Xie calls “compute pooling”—a concept aimed at virtualizing and unifying the compute resources used by the cockpit and driving systems.
But Xie is quick to clarify that compute pooling isn’t the same as cockpit-driving integration. “What we’re talking about is pooling compute power and making it accessible across all domains,” he said. “With cockpit-driving integration, you often end up compromising because the two systems have very different safety and upgrade cycles. That doesn’t always lead to lower costs—it can actually make things more expensive and rigid.”
Cybersecurity is another focal point. Halo OS includes built-in protections such as data encryption, system integrity checks, identity authentication, and permission management. These native features are meant to help the system evolve alongside emerging cybersecurity threats.
On April 15, Li Auto published a technical white paper detailing Halo OS’s system architecture and modules, putting its open-source roadmap into motion.
Xie noted that while other open-source vehicle operating systems exist, none have made a serious dent in the market. Many simply replicate what’s already out there—or were designed for problems that no longer exist. “We’re solving our own problems, yes,” he said. “But we’re also preparing for what’s next.”
“Open-sourcing isn’t a one-and-done move,” Xie added. “It’s just the starting point. We hope to collaborate with the industry to solve real problems and move forward together.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3252608841457920">article</a> was written by Li QIn for 36Kr.

Li Auto’s Halo OS is going open source

East Asia

China

Transportation

Autonomous Vehicles

Electric Vehicles

Mobility

Japanese automakers, long competitive in Indonesia, Southeast Asia's largest market, are facing pressure to reassess production capacity as they grapple with a shrinking market and the rise of Chinese electric vehicles.
"The new vehicle market pie is getting smaller," said Hiroyuki Ueda, president director of Toyota Astra Motor, an Indonesian unit of Toyota Motor. "There are more players in it, and it's a dog-eat-dog situation."
At least five Chinese brands entered the Chinese market in 2024 alone, including such big names as BYD and GAC Group.
Indonesia is the world's fourth most populous nation, with some 280 million people. New automotive sales here came to 860,000 vehicles in 2024, surpassing 810,000 in Malaysia and 570,000 in Thailand.
Toyota and Honda Motor set up local production in Indonesia ahead of rivals from the 1970s, building networks of suppliers and dealers basically from scratch.
Based on data from the Association of Indonesia Automotive Industries, Japanese automakers together controlled more than 90% of the market back in 2012, the first year for which comparable statistics are available. Japanese players had dominated even before then, according to the association and industry insiders.
But the entry by Chinese competition has shifted the landscape. Chinese automakers captured 6.4% of the market in 2024, raising their share by roughly three percentage points on the year. Japanese companies lost approximately two points, pulling their market share down to 89.5%.
Sales of Japanese automotives have rapidly declined in Thailand in recent years, and their footprint has shrunk elsewhere in Southeast Asia as well. Now Japanese automakers' dominance is starting to crumble in Indonesia, considered their last bastion.
The ascent of Chinese rivals was evident at the Indonesia International Motor Show held in Jakarta in mid-February. Among the roughly 30 brands put on display, nearly half hailed from China.
Eagle Zhao, president director of BYD Motor Indonesia, told reporters at the show that BYD had claimed a 36% share in Indonesia's EV market in just seven months.
BYD launched the M6 all-electric vehicle in Indonesia last July. The hit multipurpose vehicle started at IDR 379 million (USD 22,800). This made it less expensive than a gasoline MPV, which would usually go for around IDR 400 million (USD 66,490).
With the Trump administration imposing additional tariffs on China, "Chinese makers will further accelerate their expansion" into Indonesia, an executive at a Japanese manufacturer said.
The abrupt emergence of Chinese competitors in Indonesia can be traced to Indonesia's agenda to develop its industry. The country produces half of the world's nickel, a key ingredient in making EV batteries.
As president, Joko "Jokowi" Widodo sought to harness the wealth of natural resources into growing a native EV industry. This included subsidies noticeably biased toward electrics.
EVs that were 40% locally produced had their value-added taxes slashed to 1% from 11%. The luxury tax was cut to zero, compared with about 20% for a gasoline MPV.
The government introduced in 2024 import and luxury tax waivers for manufacturers that commit to localize production in Indonesia. The luxury tax alone would normally account for around half of the vehicle's price.
Meanwhile, the government raised the luxury tax on hybrid cars in 2021, targeting a bread-and-butter vehicle category for Japanese automakers. As a result, EV sales climbed to some 40,000 vehicles in 2024, compared with roughly 60,000 for hybrids.
This ushered in Chinese EV makers facing a slowing market at home. Their competitively priced products hit the Indonesian market.
The slowdown plaguing the Japanese players could persist.
"The market is not in a position to grow easily, given the fundamental problem of the weakening purchasing power of the middle class," an executive at a Japanese manufacturer said.
Indonesia's middle class grew 55% to 60.72 million people during the five years through 2018, according to research from the University of Indonesia. By 2023, it had dwindled to 52.03 million. The Covid-19 pandemic cost many workers well-paying jobs.
Against this backdrop, the central government raised the value-added tax to 12% from 11%. Local governments have been empowered to collect additional motor vehicle taxes and title transfer fees.
"We thought [sales] would recover to 900,000 units in 2025, but the number may fall far below that of 2024 if the extra regional government taxes are put into place," said Atsushi Kurita, president director of Mitsubishi Motors Krama Yudha Sales Indonesia.
New automotive sales in Indonesia came to 1.2 million vehicles in 2013, and the volume was expected to rise to two million. Counting on this, Japanese automakers invested in capacity expansion in the early- to mid-2010s.
But a combination of factors, such as cuts to fuel subsidies and stiffer tax levies by local governments, stood in the way.
The year 2013 ended up being the peak. With the EV incentives also swaying sales trends, "the estimates have constantly veered off course," an executive at a Japanese manufacturer said.
Indonesian President Prabowo Subianto has pivoted somewhat from the EV incentives. Luxury taxes on hybrid vehicles have come down in 2025, prompting Toyota and Suzuki Motor to discount prices on mainline hybrid models. Honda and Mitsubishi Motors are thinking about expanding their hybrid lineups.
"If things continue like this, we may have to reorganize production in Indonesia," said an executive at a major Japanese automaker. In Thailand, Suzuki and Subaru have decided to withdraw from local production of four-wheeled vehicles.
Toyota, subsidiary Daihatsu Motor, Honda, Mitsubishi Motors, and Suzuki all have Indonesian factories and produce main models locally, including engines and other key parts. Factories of Japanese suppliers are also concentrated here.
Although the market is sluggish, there is a steady shift in demand from two-wheeled to four-wheeled vehicles. Caught between expectations for a market recovery and declining profitability, Japanese automakers are struggling to chart a way forward.
This article first appeared on <a href="https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/Chinese-EVs-chip-away-at-Japan-automakers-dominance-in-Indonesia2">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>.

Chinese EVs chip away at Japan automakers' dominance in Indonesia

Japan

Honda

Toyota

Indonesia

Southeast Asia

WorldFirst, an all-in-one digital cross-border payment and treasury service offered by Ant International to global businesses, has launched “World Card,” a Mastercard-enabled virtual card solution designed to help small and medium enterprises grow by simplifying international transactions and lowering operational costs.
Small businesses stand to benefit from the e-commerce boom, where the market size is projected to reach USD 12.9 trillion in 2032 with a 13.65% compound annual growth rate (CAGR), according to <a href="https://www.researchandmarkets.com/reports/6010048/e-commerce-payment-market-forecast-report-type">Research and Markets</a>. However, they also face a range of challenges in capitalizing on this potential, including high entry barriers, rising operational costs, and fierce competition, WorldFirst found in a <a href="https://www2.deloitte.com/cn/en/pages/technology-media-and-telecommunications/articles/digital-trade-report-2024.html">report</a> it co-produced with Deloitte.
Having reportedly empowered over a million SMEs to scale internationally, WorldFirst has partnered with Mastercard to develop the following customized features for World Card, enhancing operational efficiency for global customers:
<ul>
<li aria-level="1">Global coverage across regions and use scenarios: Customers can pay with World Card for purchases anywhere Mastercard is accepted, in over 150 currencies across more than 210 territories. There are no foreign exchange fees for cross-border payments made in 15 currencies when paying with a WorldFirst account, including major currencies such as the US dollar, Chinese yuan, and euro, among others. The service covers most recurring business scenarios, ranging from digital marketing to e-commerce, software subscriptions, shipping and logistics, and more.</li>
<li aria-level="1">Security: World Card has achieved the highest level of Payment Card Industry Data Security Standard (PCI DSS) certification. It uses 3DS and AVS transaction verifications, offers round-the-clock real-time assistance, and customizable spending limits to secure transactions and prevent fraud.</li>
<li aria-level="1">Transparent and centralized multi-card management: Customers may create multiple cards to segment their expenses starting later this year. All spending can be tracked in one central dashboard, enabling precise control over expenditure.</li>
<li aria-level="1">Cashback rewards: A program offers cashback on eligible payments to help customers save and grow, subject to applicable terms and conditions.</li>
</ul>
The World Card seeks to complement the offerings of the “World Account,” the flagship product of WorldFirst encompassing international payment, collection, foreign exchange conversion, and treasury management from a single account.
In 2025, the World Card will be rolled out to markets across Asia, Europe, Oceania, and Africa. It will also begin to support Apple Pay and Google Pay in the coming months.
A physical World Card will also be made available this year, enabling in-person transactions while serving as a backup when digital payments aren't possible. The physical card retains the digital version's benefits, including multi-currency support, cashback, and security through unified platform management—while ensuring compatibility with point-of-sale chip-card terminals.
“With the launch of the World Card, WorldFirst and Mastercard are giving ambitious businesses a smarter way to manage spending. Today’s small businesses often have global ambitions, but outdated payment processes can hold them back. The new solution offers the ease, security, and international reach they need to scale without borders. Together, we’re helping them simplify operations, stay on top of spending, and expand into new markets,” said Jane Prokop, executive vice president and global head of SMEs at Mastercard.
whereRelatedArticle
“WorldFirst enables business growth by delivering solutions featuring global coverage, secure transactions and operational efficiency—essential foundations for SMEs’ success in today's digital economy. We look forward to deepening our collaboration with Mastercard and industry leaders to pioneer innovative solutions like World Card, empowering SMEs and drive inclusive growth," said Clara Shi, CEO of WorldFirst and vice president at Ant International.
WorldFirst is part of Ant International, a leading global digital payment, digitization, and financial technology provider offering a unified tech and finance platform to unlock next-generation commerce for all.
This article was written by <a href="https://www.antglobal.com/">Ant International</a> and published in partnership.

Ant International’s WorldFirst launches World Card to streamline global commerce payments

Ant Group

… href="https://36kr.com/p/3249734474817798">36Kr</a></li>
<li aria-level="1"><a href="https://lawkglasses.com/">LAWK</a>, a wearable tech firm, has raised an eight-figure RMB sum from Baohe Venture Capital and Meorient. The funds will support further development of its proprietary Wake-AI model and drive the rollout of AI-powered smart glasses across new use cases. —<a href="https://36kr.com/p/3251033291219203">36Kr</a></li>
<li aria-level="1"><a href="https://kingkong.tech/">KingKong Technology</a>, which focuses on magnetic encoders for robotics, has secured an eight-figure RMB sum across its pre-Series A and pre-Series A+ funding rounds. Casstar led the first round, while SR Capital and Jiangyin Rencai backed the latter. Founded in 2017, the company said the fresh capital will be directed toward R&amp;D and market growth. —<a href="https://36kr.com/p/3251007648637444">36Kr</a></li>
<li aria-level="1">Overseas Huasheng, a developer of electronic pastes, has raised nearly RMB 100 million in Series C funding. The round was co-led by Nuotie Assets and GCL System Integration, with I&amp;R Capital serving as financial advisor. The funds will be used to enhance R&amp;D in high-end materials such as multi-layer ceramic capacitor (MLCC) pastes, scale production, and expand into Southeast Asian markets. —<a href="https://36kr.com/p/3250656222454021">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>GoUpscale, GXS Bank, WeLab, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://goupscale.com/">GoUpscale</a>, a Singapore-based startup, landed an undisclosed investment from Accenture Ventures, the corporate venture capital arm of the global consulting giant.</li>
<li aria-level="1">GXS Bank, the Singapore-based digital bank backed by Grab and Singtel, acquired Validus Capital, the Singapore lending arm of fintech group Validus, in an all-cash deal.</li>
<li aria-level="1">WeLab, a fintech outfit based in Hong Kong, received an investment from the Hong Kong Investment Corporation (HKIC). The financial terms were not disclosed.</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: Populix and viAct raise funding, Vertex Growth invests in Dolphin Semiconductor, plus major China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

South Korea

Hong Kong

India

Europe

Last October, Dubai played host to the 44th edition of GITEX Global, an anchor fixture in the international tech calendar. Organized by the Dubai World Trade Centre (DWTC) and its international arm, Kaoun International, the event brought together tech leaders from around the globe.
What began as a regional gathering has since morphed into a sprawling global showcase, with satellite editions now staged in Europe, Africa, and Asia.
Its latest expansion—<a href="https://gitexasia.com/">GITEX Asia</a>—marks the brand’s official foray into Southeast Asia. The inaugural edition is set to take place at Marina Bay Sands in Singapore from April 23–25. It will feature four co-located events and run in tandem with AI Everything Singapore—a nod to the region’s fast-growing appetite for discourse around and adoption of artificial intelligence.
GITEX Asia arrives at a tense yet timely moment. As geopolitical fault lines deepen, the need for platforms that foster cross-border cooperation feels more urgent than ever.
Southeast Asia, after all, is in the midst of a digital transformation. The <a href="https://www.weforum.org/stories/2023/12/how-southeast-asia-can-become-trillion-digital-economy/?utm_source=chatgpt.com">World Economic Forum</a> projects the region’s digital economy will reach at least USD 600 billion in gross merchandise value (GMV) by 2030, with significant potential to push that figure as high as USD 1 trillion.
Fueling this momentum are government investments, rapid digital adoption, and a growing roster of AI initiatives. A 2024 <a href="https://accesspartnership.com/strengthening-singapores-ai-leadership-with-google/">report</a> by Access Partnership, produced in collaboration with Google, estimates that AI alone could unlock USD 835 billion in economic value across the region by 2030. And that’s just a slice—28%, to be exact—of the broader AI opportunity across the Asia Pacific, which is forecast to hit USD 3 trillion.
But the road ahead isn’t seamless. Fragmented regulations, uneven digital readiness, and limited cross-border policy coordination continue to pose challenges.
That’s where GITEX Asia hopes to make a difference. By convening a truly international cast—more than 70% of exhibitors will be making their Singapore debut—the event aims to inject fresh energy into the regional ecosystem. Compared to established mainstays like the Singapore Week of Innovation and Technology (SWITCH), Tech in Asia Conference, and Echelon, this new entry promises a broader, more globally inclusive mix.
According to organizers, more than 700 tech companies and startups from over 70 countries will be onsite, joined by more than 250 investors collectively managing around USD 200 billion in assets. Programming will orbit around four core themes: AI, cybersecurity, health technology, and startup innovation.
Governments are also expected to attend. Delegations from innovation agencies and ministries across Asia and Europe will lend a diplomatic dimension to the gathering. AI Everything Singapore, in particular, will spotlight two flagship initiatives: “AI 100,” which brings together startups from over 30 countries, and “Crystal Ball,” a forum focused on ransomware resilience and public–private cybersecurity collaboration. Meanwhile, panels will explore topics like AI regulation, generative AI, smart healthcare, and next-generation connectivity.
<figure id="attachment_152522" aria-describedby="caption-attachment-152522" style="width: 1920px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-152522" src="https://console.kr-asia.com/wp-content/uploads/2025/04/AI-Everything-Global-2025-Crowd.jpg" alt="" width="1920" height="1280" srcset="https://console.kr-asia.com/wp-content/uploads/2025/04/AI-Everything-Global-2025-Crowd.jpg 1920w, https://console.kr-asia.com/wp-content/uploads/2025/04/AI-Everything-Global-2025-Crowd-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/04/AI-Everything-Global-2025-Crowd-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/04/AI-Everything-Global-2025-Crowd-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/04/AI-Everything-Global-2025-Crowd-1536x1024.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px" /><figcaption id="caption-attachment-152522" class="wp-caption-text">The global edition of the AI Everything conference, held in February, drew large crowds to Abu Dhabi and Dubai, where its summit and exhibition took place, respectively. Photo and header photo courtesy of DWTC.</figcaption></figure>
Still, the true test lies ahead. Large-scale tech expos often struggle to deliver local value beyond glossy networking. Southeast Asia’s innovation needs are diverse, and stakeholders across the region will be watching to see whether this splashy debut delivers more than just stage time.
Trixie LohMirmand, executive vice president at DWTC and CEO of Kaoun International, summed up the ambition in a recent statement. GITEX Asia, she said, is meant to serve as a “vital collective barometer” of the digital and AI economies—a venue where real relationships are built and international collaboration can take root.
Whether GITEX Asia becomes a staple in the region’s crowded tech calendar depends on what happens after the booths come down. Are the conversations followed by action? Will pilots turn into partnerships? If so, the event could carve out a lasting role in shaping Southeast Asia’s digital trajectory.
For now, it offers a rare chance for the region to broaden its interface with the rest of the world—at a time when those connections might matter more than ever.

GITEX Asia heads to Singapore, setting the stage for Southeast Asia’s next tech act

Middle East

… NPCs have distinct personality traits, motivations, and life goals. Their routines shift with changing circumstances, like time of day or life events, and interactions with players can influence future actions. For instance, a single player choice could lead to a change in an NPC’s lifestyle.</li>
<li aria-level="1">Social simulation: These characters work, socialize, shop, and take part in community events. They can also be folded into player-created storylines, mirroring the social complexity of real urban life.</li>
<li aria-level="1">Generative storytelling: AI-powered narratives ensure each player has a unique experience. Different NPCs generate different arcs and events, continually shaping the world around them.</li>
<li aria-level="1">Natural dialogue: Players can have natural conversations with NPCs like they would with a chatbot, and receive relevant, often surprising, responses.</li>
</ol>
“With Nvidia’s technology, we wanted to give players a new way to view and shape city life—to really live in the world they build,” one developer said.
<figure id="attachment_152502" aria-describedby="caption-attachment-152502" style="width: 1080px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-full wp-image-152502" src="https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim.jpg" alt="Hyungjun Kim, the director leading the development of InZoi." width="1080" height="720" srcset="https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim.jpg 1080w, https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim-720x480.jpg 720w, https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/04/InZoi-Studio-Hyungjun-Kim-768x512.jpg 768w" sizes="(max-width: 1080px) 100vw, 1080px" /><figcaption id="caption-attachment-152502" class="wp-caption-text">Hyungjun Kim, the director leading the development of InZoi. Photo source: Krafton.</figcaption></figure>
You can turn Smart Zoi on or off. When it’s active, NPCs consider everything from household income to romantic tension when making decisions. One might skip lunch to catch a museum exhibit, and the system will even tag this as an “exception,” complete with in-game reasoning.
In some cases, the emotional nuance can be startling. In one Bilibili test video, an NPC family seemed off—frequent fights, no jobs, visibly distressed child. It turned out they were grieving a lost child.
InZoi doesn’t just simulate. It lets you play puppet master. With a tool called the “Zoi Pen,” players can assign characters specific goals by typing short instructions. Tell one NPC to chase a Hollywood dream, and that becomes its life goal. Instruct another to pick fights for no reason, and it’ll gladly take up the role of neighborhood menace.
<h3>GPU meltdown and mood swings</h3>
For all its ambition, Smart Zoi doesn’t come cheap. It’s a resource hog, and its complexity can push even high-end hardware to the brink.
On top-tier setups with RTX 5080 cards, frame rates reportedly drop from 120 to 45 when the feature is switched on, according to 36Kr. On mid-end rigs like the RTX 3070, crowded scenes can at times devolve into jagged slideshow nightmares. Even players running RTX 4090Bs—the cream of the crop—have reportedly seen frame rates sink below 20 FPS. No wonder InZoi has earned the nickname “GPU killer” on Bilibili.
Some settings let players dial down Smart Zoi’s load, limiting it to on-screen characters or capping the queue size. Early reports, however, suggest the performance hit remains significant.
Then there’s the emotional logic. NPCs can swing from joy to rage without warning. One reviewer watched a character go nuclear after stepping in a puddle. Emotional realism? Not quite.
Much of that unpredictability stems from Krafton’s proprietary gaming small language model (GSLM), a lightweight, locally run alternative to cloud-based large language models (LLMs) used by platforms like ChatGPT and DeepSeek. Built to avoid lag and server dependencies, GSLM powers everything from Smart Zoi to Psycat, the in-game feline assistant that fields player questions.
InZoi might be the first game to fully run a system like this on local devices, and that ambition comes through. So do the cracks. Still, even when things go off the rails, the promise of what AI could bring to gaming is hard to miss.
<h3>What’s next?</h3>
When ENIAC, the world’s first general-purpose computer, debuted in 1946, it filled a room and weighed 30 tons. Now, a smartphone in your pocket is vastly more powerful.
Tech history follows a pattern: things shrink, become accessible, and eventually feel indispensable. InZoi may be clunky, demanding, and rough in parts—but it signals where gaming might go next.
If AI can move beyond simulating life to actually experiencing and reacting to it, then we might not be that far from digital consciousness—or at least to characters that behave with unsettling realism. What happens then, when your NPC becomes more interesting than you?
That’s a question for another rainy weekend.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3248594734276870">article</a> was written by Liu Chongjiang for 36Kr.

InZoi is what happens when The Sims meets AI, and the results are gloriously unstable

Artificial Intelligence

Gaming

Deep Tech

Creative

… clips and expects to reach 200 million by year-end. It also recently completed a working demo of vehicle control using a distilled foundation model on aftermarket computing hardware. Early results were, in the words of one insider, “surprisingly competent.”
To support its model ambitions, Xpeng has built China’s first ten-exaflop automotive computing cluster. The system reportedly runs at over 90% efficiency around the clock.
Xpeng is betting on the scaling law: bigger models, better data, better performance. It plans to roll out Level 3 self-driving features in the second half of 2025 and begin Level 4 trials by 2026.
But this next phase of autonomy won’t be defined by chips or software alone. Talent matters just as much. Xpeng’s foundation model program is led by its North America-based AI team. Xiaomi, another EV contender, just brought in Chen Long from UK-based Wayve to jumpstart its own VLA push.
It’s an arms race on all fronts: compute, code, capital, and capability. And with Turing hitting the streets, Xpeng just gave itself a fighting chance to lead again.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3249948263293186">article</a> was written by Li Anqi for 36Kr.

Xpeng’s Turing AI chip nears mass production, takes aim at Nvidia

Xpeng Motors

On March 25, <a href="/company/kuaishou">Kuaishou</a> opened its earnings call for the fourth quarter and full year of 2024 with a familiar overture: <a href="/industry/ai">artificial intelligence</a>. It wasn’t just a buzzword sprinkled in the report, but the headline. CEO Cheng Yixiao made it clear that the company’s future would hinge on AI, not merely as a tool for optimization, but as a force capable of generating new revenue and carrying Kuaishou through the tech cycle’s ups and downs.
That bet is starting to show returns. For the first time, Kuaishou disclosed revenue from Kling, its video generation model: over RMB 100 million (USD 14 million) as of February 2025. It’s a modest figure in the grand scheme of things, but it signals that the company is moving toward monetization, not just moonshots.
Kuaishou’s approach to AI is a two-pronged strategy: supercharge existing businesses while carving out new traffic gateways.
On the user side, AI is sharpening the platform’s recommendations. In Q4 2024, the app reached 401 million daily active users (DAUs) and 736 million monthly active users (MAUs), up 4.8% and 5% year-on-year (YoY), respectively. That’s no small feat in a market where user growth has largely plateaued. According to the company, large models now analyze everything from short videos and livestreams to comment threads and individual interests to serve up stickier recommendations.
AI is also reshaping Kuaishou’s revenue engines: advertising and e-commerce. Its automated ad solution, Universal Auto X (UAX), was cited as a key driver of growth. Online marketing revenue rose to RMB 20.6 billion (USD 2.9 billion) in Q4, a 13.3% increase. For the full year, ad revenue reached RMB 72.4 billion (USD 10.1 billion), up 20.1%. The share of UAX-driven ad spend in external-facing campaigns surpassed 55%, up five percentage points from the previous quarter.
But the strongest signal of generative AI’s traction came from daily ad spend on AI-generated content (AIGC), which reached RMB 30 million (USD 4.2 million) in Q4—up about 50% from the previous quarter. That puts total quarterly AIGC spend at roughly RMB 2.76 billion (USD 386.4 million), accounting for 13.4% of total ad revenue.
For all its behind-the-scenes enhancements, Kling is the showpiece. In Q4, Kuaishou launched version 1.6 of the model and rolled out a <a href="https://kr-asia.com/kuaishous-kling-ai-video-generator-launches-globally-to-challenge-openais-sora">standalone Kling app</a>—an effort to create a new consumer entry point. During a government press briefing in March, Kling was name-checked by Chen Changsheng from the State Council Research Office, who said its performance had already outpaced <a href="/company/openai">OpenAI’s</a> Sora in certain evaluations. Alongside Unitree’s dancing robots and <a href="/company/deepseek">DeepSeek’s</a> global rise, Kling has emerged as one of the poster children for China’s AI ambitions.
Cheng framed Kling as more than a feature, describing it as Kuaishou’s tool to reimagine content creation while defending its turf as a short video heavyweight.
There’s a flipside. Kuaishou’s e-commerce GMV (gross merchandise value) hit RMB 462.1 billion (USD 64.7 billion) in Q4, up 14.4% YoY. That’s slower than the 15.1% growth in Q3—and well below the 20–30% pace of 2023. The deceleration heightens the urgency to diversify, and AI is the company’s strongest card.
Still, investors remain cautious. Kuaishou’s R&amp;D spend in 2024 was RMB 12.2 billion (USD 1.7 billion), essentially flat YoY. That pales in comparison to ByteDance, whose AI-related capital expenditures reportedly reached RMB 80 billion (USD 11.2 billion), according to a research note from Zheshang Securities cited by local media.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3249725268599046">article</a> was written by Lan Jie for 36Kr.

Kuaishou turns to AI—and Kling—to stay sticky in a flatlining market

Kuaishou

Entertainment

Short Video

Live Streaming

Video

Content

… href="https://www.fiercepharma.com/pharma/trumps-liberation-day-tariffs-seem-spare-pharma-threat-industry-specific-duties-and">Fierce Pharma</a> “it’s not that simple,” citing the unlikelihood of being able to fully relocate the manufacturing of drugs to the US or another territory with lower tariffs.
Some see opportunity in the upheaval. One industry insider noted that while the US is still the most profitable pharmaceutical market, demand for medicine spans every corner of the world. Tapping into new regions like Europe or Southeast Asia could inject fresh momentum.
Hybio Pharmaceutical, for one, said it has been weighing such moves for some time and is closely watching how the situation unfolds, aiming to lessen its reliance on the US.
Chinese firms, in fact, have weathered tariff shocks before. When the US hiked duties on Chinese syringes, respirators, and medical gloves in 2024, many companies responded by ramping up overseas production and steering toward more diversified markets.
“For now, we’ll wait and see. Tighten the belt, hold steady for two more years,” said Liang Yu. “By the next midterm elections, maybe things will be clearer.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3245311172263554">article</a> was written by Hu Xiangyun for 36Kr.

Chinese drugmakers weigh options as US mulls pharma tariffs

Biotechnology

Health Tech