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At the end of 2024, Ilya Sutskever, co-founder and former chief scientist of OpenAI, delivered a statement that reverberated across the artificial intelligence community: all internet data had been consumed by large models. He suggested that pre-training—the core technology underpinning these models—might be nearing its conclusion. Though mature downstream applications remain scarce, Sutskever’s pronouncement marked an inflection point in AI’s development.
This statement, akin to a bombshell, delineated a significant boundary in the evolution of artificial intelligence. Coincidentally, just one day earlier, semiconductor giant Broadcom released its financial report. CEO Hock Tan projected that Broadcom’s custom XPU chips would generate between USD 60–90 billion in revenue for the fiscal year 2027.
Broadcom’s XPU is a custom application-specific integrated circuit (ASIC) developed in partnership with tech powerhouses like Google, Amazon, and Meta. Unlike Nvidia’s general-purpose GPUs, XPUs are tailored for specific tasks, highlighting the contrasting roles of these chips in large model applications: ASICs excel at inference, while GPUs are better suited for training.
Both Sutskever’s and Tan’s predictions hinted at the same underlying shift: the demand for AI chips is evolving, and GPUs could be ceding their dominance to ASICs.
The market responded swiftly. On December 13, Broadcom’s stock surged 24%, catapulting its valuation past USD 1 trillion. Meanwhile, Nvidia faced four consecutive days of stock declines. Even before this spike, Broadcom had already reached a valuation of USD 800 billion. This remarkable rise reflects a pivotal shift in investor sentiment: the belief that the era of intensive pre-training is winding down, opening the door for ASICs to erode Nvidia’s market share and drive Broadcom’s growth.
However, the new wave of AI chip competition may not be as intense as anticipated.
<h3>Broadcom’s ascent</h3>
Broadcom's latest financial results exceeded market expectations, driven by robust growth across key segments. AI-related revenue for the fiscal year soared by 220%, propelling the semiconductor division's revenue to a record USD 30.1 billion, a 7% year-on-year increase. Combined with CEO Hock Tan’s optimistic forecast for the 2027 market scale, Broadcom’s ASIC business is now viewed as entering a pivotal growth phase.
Broadcom’s business operates under two primary categories: semiconductor solutions and infrastructure hardware. The infrastructure hardware division, which experienced a 196% year-on-year revenue surge thanks to VMware’s integration, was the main contributor to Broadcom’s overall 44% revenue growth for the year. Meanwhile, the company’s original software business saw only marginal increases.
In the fourth quarter, Broadcom reported a net profit of USD 4.32 billion, bolstered by revenue growth and improved operational efficiencies. Business integration efforts further reduced expense ratios, accelerating profit realization.
Broadcom's networking segment, part of its semiconductor solutions division, has become a cornerstone of its growth. ASICs now account for 32% of the company’s revenue, making them its largest revenue contributor. This segment also includes Ethernet switch and router chips, PHY chips, and optical transceivers, underscoring the breadth of Broadcom’s networking portfolio.
Broadcom’s foray into the ASIC business began with its 2016 acquisition of storage company LSI, and it has since become a major growth driver. Historically, Broadcom’s Ethernet switch products were the flagship of its data center networking equipment portfolio, where the company held a dominant position.
The rapid expansion of AI data centers has significantly increased demand for networking equipment. For instance, AI systems powered by Nvidia’s chips typically require around nine 1.6T optical modules per machine. This surge in demand has driven up the stock prices of optical module manufacturers like Marvell, whose <a href="https://kr-asia.com/chinas-marvell-rides-ai-boom-gaining-ground-alongside-nvidia-as-stock-doubles">valuation has doubled over the past year</a> due to Nvidia’s strong market presence.
Broadcom initially benefited from this trend with its switch products. However, Nvidia’s acquisition of Mellanox in 2019 disrupted this dynamic, allowing Nvidia to enter the switch market and directly compete with Broadcom.
In response, Broadcom has leaned heavily into its ASIC business, which has emerged as a crucial cash cow within its networking division.
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<h3>End of Nvidia’s dominance?</h3>
“The deceleration of Nvidia’s growth is inevitable, but being surpassed or replaced is impossible,” one investor said.
While Broadcom’s ascent is clear, whether Nvidia can truly be replaced remains an open question. From a technical perspective, GPUs are also capable of performing inference tasks, despite ASICs being commonly associated with them. For instance, Nvidia’s GB200 chip delivers inference performance 30 times greater than its H100 predecessor.
That said, ASICs excel in scenarios requiring low power consumption and compact designs, making them better suited for edge applications. Meanwhile, Nvidia’s dominance and premium pricing have positioned it as a shared adversary for companies seeking cost-effective alternatives in the AI sector.
Broadcom, as the most viable competitor, has gained industry support from those looking to diversify away from Nvidia. Still, market analysts caution that Broadcom’s gains may be overhyped, while Nvidia’s stock could be undervalued. The slowdown in pre-training does not necessarily signal the decline of general-purpose models. Furthermore, widespread ASIC adoption could disrupt existing large language model frameworks, which remain central to AI’s current landscape.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3110939747290884">article</a> was written by Song Wanxin for 36Kr.

Can Broadcom overtake Nvidia in AI chipmaking?

Nvidia

Broadcom

Artificial Intelligence

Deep Tech

Semiconductors

Artificial intelligence

The outlook of China's onshore IPOs remains uncertain for 2025 following a record-low in fundraising deals in 2024.
For the full year, Chinese mainland stock markets were expected to raise RMB 68 billion (USD 9.32 billion) through 101 IPOs, according to Deloitte China. This is a 68% drop in value from 2023 and far less than the range of between RMB 267–317 billion (USD 36.6–43.4 billion) estimated by the financial services provider in December 2023.
A series of policy-tightening measures initiated by the China Securities Regulatory Commission in March 2024 to curb the listing of unprofitable companies and to enhance existing companies' market valuation appears to have slowed the pace of new listing applications.
In a break from earlier practices, Deloitte China has refrained from giving an estimate for 2025, saying the market will be highly dependent on policy.
On the other hand, Chinese regulators' support for Hong Kong had given the city's IPO market a boost, fueling new share sales by stocks already listed in mainland China that have big market capitalizations. Another major contributor came from company owners that opted to list due to pressure from early private investors who wanted exit from their investments.
Thanks to listings by the likes of Midea Group, a Shenzhen-listed Chinese home appliance maker that raised HKD 35.7 billion (USD 4.6 billion), Hong Kong was set to rank fourth in the global IPO market for 2024, according to Deloitte China. India led the pack, followed by Nasdaq and the New York Stock Exchange in the US.
KPMG estimated there will be roughly 80 listings in Hong Kong in 2025, raising between HKD 100–120 billion (USD 12.9–15.5 billion), while Deloitte China projected a larger range between HKD 130–150 billion (USD 16.8–19.3 billion).
Besides IPOs, <a title="" href="https://asia.nikkei.com/Business/Business-deals" target="_blank" rel="noopener">mergers and acquisitions</a>—another major route for investors exiting their portfolios—are expected to bounce back from a low in 2024, if the Chinese economy shows clearer signs of recovery, analysts said.
The M&amp;A volume in Greater China, including the mainland, Hong Kong, and Taiwan, dropped 10% from a year ago to USD 297 billion from the beginning of 2024 through November 29, Dealogic data showed. For the full year, it's expected to end at USD 325 billion, or 15% lower than 2023. The number is the lowest in 15 years, Samson Lo, co-head of M&amp;A for Asia Pacific at UBS, told reporters in early December 2024. Lo expects a 15% rebound in volume in 2025.
Much of the appetite is likely to come from Chinese state investors with access to resources as cross-border deals face scrutiny from both regulators in Beijing and their home countries. Following a merger with Credit Suisse, UBS announced in June the sale of a 85.01% stake that the Swiss banking group owned with Founder Securities in Credit Suisse Securities (China) to Beijing state-owned Assets Management, according to Lo. The transaction amount was USD 215.4 million.
"For selling Chinese assets, the most reasonable [exit route] and the deals that could be completed are with state-owned enterprises or government-related [entities], or state-owned funds," Lo said.
Non-domestic investors' participation in Chinese deals remains low. "The prospects of abrupt policy shifts and capital repatriation were commonly cited as core concern," analyst Kaidi Gao was quoted in a report published by PitchBook on December 20, 2024, citing conversations with investors.
"We expect US investor involvement—from both general partners and limited partners—in the private market in China to remain diminished, at least for the foreseeable future. US investors face an additional layer of challenges compared with their global counterparts against the backdrop of elevated US-China tensions," Gao wrote.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Markets/Uncertainties-cloud-China-s-2025-IPO-prospects" 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>.

Uncertainties cloud China's 2025 IPO prospects

Venture Capital

China

… broader gaming audience. Its unique approach to blending niche and mainstream content is reshaping its role in China’s gaming and advertising industries.
<h3>Unrealized potential?</h3>
Despite Xiaohongshu’s ambitions to expand its footprint in gaming, its influence in non-otome genres remains limited. A representative from a leading Chinese game publisher explained that while the platform holds clear appeal for specific demographics—such as female users and fans of anime culture—it has not yet reached the level of significance needed for publishers to prioritize it in their marketing strategies.
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On the execution side, Xiaohongshu often takes a back seat in influencer marketing campaigns. An industry insider noted that platforms like Douyin typically command far larger budgets, with campaigns frequently surpassing hundreds of thousands of RMB. In contrast, Xiaohongshu campaigns often receive budgets capped at just a few thousand RMB. This disparity discourages key opinion consumers from taking on Xiaohongshu projects, as the financial returns are less attractive.
Xiaohongshu’s smaller traffic pool compared to platforms like Douyin and Kuaishou is another significant hurdle. In an increasingly data-driven environment, where performance indicators like return on investment (ROI) and cost per mille (CPM) dominate decision-making, Xiaohongshu struggles to compete. Several marketers have emphasized that Xiaohongshu excels more at content seeding—generating awareness and organic interest—than driving direct conversions. As one marketer explained, “Xiaohongshu isn’t suited for purely performance-driven campaigns focused on metrics like cost per acquisition (CPA) and ROI. Instead, it’s better for word-of-mouth marketing that influences purchase decisions over time.”
While this positioning has proven effective for otome games, it has yet to translate into broader gaming categories. With Douyin and Kuaishou offering larger traffic pools and faster conversion cycles, Xiaohongshu faces steep competition in carving out a distinctive role in game-related marketing.
Additionally, Xiaohongshu’s ecosystem appears better suited for fostering engagement within established communities rather than converting new users. As one otoge player put it, “I browse otome game content on Xiaohongshu because it’s the social app I use most, but I don’t feel that game promotions there influence me much.”
For Xiaohongshu, expanding beyond otome games and proving its ability to attract diverse gaming audiences remains an uphill battle. While the platform’s potential is undeniable, realizing that potential will require addressing its current limitations in traffic scale, performance metrics, and ROI visibility.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3111122031169033">article</a> was written by Lan Jie for 36Kr.

Xiaohongshu carves a niche with otome games but struggles to expand in gaming

Northeast Asia

Entertainment

Gaming

Creative

Content

<h3>Indonesia’s Skor confirms USD 6.2 million pre-Series A round </h3>
Following yesterday’s report, Indonesian fintech company Skor Technologies has confirmed raising USD 6.2 million in a pre-Series A funding round led by Argor Capital. The round also saw participation from QED Investors, Saison Capital, and new backer Digital Currency Group.
“We believe Indonesia is a supply-constrained market for credit line products, and it is the right time to solve this growing consumer need,” said Ongki Kurniawan, co-founder and CEO of Skor. “The opportunity to build a two-million-card customer base exists, and along with our bank partners, we are motivated to make this a reality.”
<h3>MetAI raises USD 4 million in seed funding from Nvidia and others</h3>
Digital twin solutions provider <a href="https://www.met-ai.net/en">MetAI</a> has raised USD 4 million in seed funding, with participation from Nvidia, Kenmec Mechanical Engineering, Solomon Technology, SparkLabs Taiwan, Addin Ventures, and Upstream Ventures, according to <a href="https://techcrunch.com/2025/01/14/nvidia-backs-metai-a-taiwanese-startup-that-creates-ai-powered-digital-twins/?guccounter=1">TechCrunch</a>.
MetAI transforms CAD files into “SimReady” digital twins in minutes, facilitating the training and validation of robotics and autonomous systems in realistic simulated environments. Its solutions, which integrate generative models and synthetic data, target industries like semiconductor manufacturing and smart warehousing.
The funding will support MetAI’s plans to expand its R&amp;D team, accelerate go-to-market strategies, and establish a US office. The company also intends to relocate its headquarters by late 2025.
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<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">ASDRe, a company specializing in medical applications of brain-computer interface (BCI) technology, has raised an eight-figure RMB sum in an angel extension round funded by Feixi Chancheng Holding Group. The funds will support product development, medical registrations, and market expansion. —<a href="https://36kr.com/p/3122388467044352">36Kr</a></li>
<li aria-level="1"><a href="http://www.flightwin.com/en/">Flightwin</a>, a leading developer of unmanned aerial vehicle (UAV) systems, has closed a Series B++ funding round worth a nine-figure RMB sum. The investors include the Beijing Commercial Aerospace and Low-Altitude Economy Fund, Liangxi Science and Technology Innovation Industry Fund, Hainan Hecheng Aerospace Industry Fund, Hecheng Xinhang Shandong Low-Altitude Fund, and the Shoufazhan Jieli Fund. Existing backer Essential Capital also participated. —<a href="https://36kr.com/p/3120974765494275">36Kr</a></li>
<li aria-level="1"><a href="https://hitems.ai/">Hitems</a>, an AI-driven design platform founded by Ren Lifeng, a former ByteDance executive, has secured an eight-figure RMB sum in a pre-Series A funding round. Meituan’s DragonBall Capital led the round, with participation from Jinqiu Fund, HongShan, and IDG Capital. Hitems integrates generative AI technologies to provide a creative ecosystem where users can generate, produce, and sell personalized products. The company will utilize the newly raised capital for platform development and market expansion, targeting global audiences. —<a href="https://36kr.com/p/3122151514689794">36Kr</a></li>
</ul>
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<h3>Bythen, Varadise, MiRXES, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.bythen.ai/">Bythen</a>, a platform enabling artificial intelligence-powered digital personas, secured USD 5 million in seed funding. The round was co-led by Japanese public relations agency Vector and early-stage venture capital firm Skystar Capital.</li>
<li aria-level="1"><a href="https://varadise.ai/">Varadise</a>, a company specializing in digital twin technology for the built environment, raised USD 3 million in a Series A funding round led by Betatron Venture Group, with co-investment from the Innovation and Technology Venture Fund (ITVF).</li>
<li aria-level="1">MiRXES, a Singapore-based cancer diagnostics firm, secured USD 40 million in structured financing from CBC Group's R-Bridge Healthcare Fund.</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: Indonesia’s Skor confirms pre-Series A round, MetAI raises seed funding, latest China deals, and more

Private Equity

Investment

Merger &amp; Acquisition

Indonesia

Southeast Asia

… Looi Robot. Photo source: XbotPark.</figcaption></figure>
<h3>4. Matrix Innovation’s flexible pressure sensors: Versatile, durable, and scalable</h3>
Matrix Innovation’s flexible pressure sensors are designed for a wide range of applications, from smart mattresses and robotic hands to adult products. These sensors prioritize specific requirements like softness and breathability for mattresses, or compact and customizable shapes for robotics.
Featuring corrosion resistance and mechanical durability, these sensors can withstand environments up to 220 degrees Celsius and 80 bar of pressure. With an IP67 rating and a thickness of just 0.1 millimeters, they integrate seamlessly with flat, curved, or irregular surfaces.
Since production began in June 2023, Matrix Innovation has shipped over 100,000 units, meeting the needs of industries including consumer electronics, smart homes, automotives, and robotics.
<figure id="attachment_151648" aria-describedby="caption-attachment-151648" style="width: 640px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-151648" src="https://console.kr-asia.com/wp-content/uploads/2025/01/Matrix-Innovation-Flexible-Pressure-Sensor-1024x576.jpg" alt="Image shows a robotic hand utilizing Matrix Innovation’s flexible pressure sensors." width="640" height="360" srcset="https://console.kr-asia.com/wp-content/uploads/2025/01/Matrix-Innovation-Flexible-Pressure-Sensor-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/01/Matrix-Innovation-Flexible-Pressure-Sensor-300x169.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/01/Matrix-Innovation-Flexible-Pressure-Sensor-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/01/Matrix-Innovation-Flexible-Pressure-Sensor-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2025/01/Matrix-Innovation-Flexible-Pressure-Sensor.jpg 1280w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption id="caption-attachment-151648" class="wp-caption-text">Image shows a robotic hand utilizing Matrix Innovation’s flexible pressure sensors. Image source: XbotPark.</figcaption></figure>
<h3>5. Vizta’s smart telescope: Making stargazing accessible for all</h3>
The Vizta smart telescope, developed by Xingshi Technology, addresses the limitations of traditional astrophotography equipment by offering an affordable and compact alternative. Weighing just 390 grams, the Vizta telescope is portable enough for travel and pairs easily with smartphones.
For around USD 240, users can mount the Vizta telescope on a tripod, attach their smartphone, and begin exploring the night sky. Available on Kickstarter and Indiegogo, the device has raised over USD 230,000 to date, bringing stargazing to beginners, students, and hobbyists alike.
<figure id="attachment_151649" aria-describedby="caption-attachment-151649" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-151649" src="https://console.kr-asia.com/wp-content/uploads/2025/01/Vizta-Smart-Telescope-1024x768.jpg" alt="Image of the Vizta smart telescope." width="480" height="360" srcset="https://console.kr-asia.com/wp-content/uploads/2025/01/Vizta-Smart-Telescope-1024x768.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/01/Vizta-Smart-Telescope-300x225.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/01/Vizta-Smart-Telescope-768x576.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/01/Vizta-Smart-Telescope.jpg 1280w" sizes="(max-width: 480px) 100vw, 480px" /><figcaption id="caption-attachment-151649" class="wp-caption-text">Image of the Vizta smart telescope. Image source: XbotPark.</figcaption></figure>
<h3>6. Lissome’s portable dishwasher: Compact design, versatile functionality</h3>
Lissome’s portable dishwasher combines washing, drying, disinfecting, and storage in a sleek, space-saving form. Its vertical spray arms and patented vortex spray technology deliver 360-degree cleaning, supported by an AI-powered dirt detection system.
After washing, the dishwasher uses high-temperature ultraviolet and ozone sterilization to eliminate bacteria. A brushless integrated water pump and precise field-oriented motion control algorithm enable flexible cleaning modes—including spot, variable-speed, and cross-cleaning—completing a cycle in just 15 minutes.
Inspired by CPU designs, the dishwasher features a narrow, front-opening door for space efficiency and an integrated water tank for plug-and-play convenience, eliminating the need for complex installations. It has raised USD 350,000 via crowdfunding, demonstrating strong consumer demand for this innovative appliance.
<figure id="attachment_151647" aria-describedby="caption-attachment-151647" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-151647" src="https://console.kr-asia.com/wp-content/uploads/2025/01/Lissome-Portable-Dishwasher-1024x683.jpg" alt="Photo shows a mockup installation of Lissome’s portable dishwasher." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2025/01/Lissome-Portable-Dishwasher-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/01/Lissome-Portable-Dishwasher-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/01/Lissome-Portable-Dishwasher-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/01/Lissome-Portable-Dishwasher-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/01/Lissome-Portable-Dishwasher.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151647" class="wp-caption-text">Photo shows a mockup installation of Lissome’s portable dishwasher. Photo source: XbotPark.</figcaption></figure>
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3116734805577734">article</a> was written by Hu Yiting for 36Kr.

XbotPark dazzled CES 2025 with firsts in smart tech and robotics

WeChat’s annual Open Class event on January 9 adhered to the closed-door format introduced last year, welcoming industry insiders for an exclusive session. No media invitations or live streaming options were provided, but photos and insights shared by attendees shed light on key announcements. This year’s focus centered on the interplay between stores, mini programs, and service accounts, alongside updates to WeChat’s e-commerce infrastructure. The much-anticipated gifting feature also garnered significant attention, with plans for a formal launch during the Lunar New Year.
During the event, WeChat announced notable 2024 performance metrics for its stores, highlighting a 92% increase in gross merchandise value (GMV) and a 125% rise in order volume. Active product listings surged by 283%, while gross profit margins grew by 50%. Monthly active merchants also expanded by 70%.
Demographic data reveals that 97.7% of WeChat video account users are aged 25 or older, with women comprising 63% of the audience. Users from tier-two and tier-three cities make up the largest segment at 40%, while tier-one cities account for 32%. The remaining 28% includes lower-tier cities and overseas users.
A recurring theme of the event was the integration of WeChat stores with other platform components, such as mini programs, service accounts, community features, and search. The objective is to construct a robust e-commerce ecosystem entirely within WeChat, reducing reliance on video accounts and live streaming.
WeChat unveiled a “three-in-one” ecosystem designed to streamline merchant operations: WeChat stores to manage transactions, orders, and after-sales services; mini programs to offer functional services, loyalty tools, and marketing solutions akin to brand websites; and service accounts to drive customer retention and repeat purchases. This ecosystem aims to foster more seamless user experiences—customers can explore a brand’s mini program for product details and promotions, complete transactions in the store, and receive follow-ups through the service account. WeChat highlighted this synergy as a driver of new traffic and high repeat purchases, potentially enhancing merchants’ growth.
Acknowledging merchant concerns about overlapping systems, WeChat also announced simplified interconnectivity between mini programs and stores. Developers no longer need to create separate stores within their mini programs. Instead, they can deploy stores directly through the WeChat stores module, enabling unified management of listings, prices, and updates across the platform.
A pilot gifting feature launched on December 19, 2024, was described by analysts as potentially as impactful as WeChat’s iconic red envelope feature. The tool allows users to send gifts via social connections, reducing marketing costs for merchants while amplifying product visibility. Two upcoming innovations promise to elevate gifting further: customization tools for merchants to design branded pages, stickers, and package cards; and offline-to-online channels that let customers scan QR codes at physical stores to send gifts via WeChat. These features, slated to launch before the Lunar New Year, have already unsettled competitors like Taobao and Douyin, which have rushed to introduce similar tools.
WeChat’s affiliate marketing program, introduced in December 2024, empowers promoters to share product links within the app without external redirects. Merchants can collaborate with third-party affiliate agencies to promote products via live streams or product cards. WeChat supports these efforts by waiving commission fees for affiliate marketers and charging a flat 1% platform service fee, with 0.4% returned as traffic coupons. Future updates will include tools for short video attribution, live stream integration, and enhanced coupon options, bolstering sales and engagement.
In addition, WeChat is streamlining merchant onboarding for 2025. The platform intends to expand access to 391 product subcategories and simplify rules for 26 main categories, including apparel, bags, and agricultural products. Guarantee deposits will be reduced by up to 50% for categories like jewelry and women’s fashion, with a zero-deposit option introduced for select categories.
A Tencent insider expressed confidence in WeChat e-commerce’s growth potential, noting its relative underdevelopment compared to competitors. Tencent president Martin Lau echoed this sentiment during the Q2 2024 earnings call, emphasizing substantial room for expansion despite industry headwinds.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3116603121684483">article</a> was written by Wang Yuchan for 36Kr.

WeChat outlines its e-commerce ambitions at latest Open Class event

WeChat

East Asia

On-demand Services

E-commerce

Consumer Economy

Xiaohongshu tops Apple’s US app store as TikTok ban looms

TikTok

… wp-image-151634" src="https://console.kr-asia.com/wp-content/uploads/2025/01/Ant-Group-Cyril-Han-2025-Haodf-Conference-1024x683.jpg" alt="Photo of Ant Group president Cyril Han speaking during the 2025 Haodf Conference." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2025/01/Ant-Group-Cyril-Han-2025-Haodf-Conference-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/01/Ant-Group-Cyril-Han-2025-Haodf-Conference-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/01/Ant-Group-Cyril-Han-2025-Haodf-Conference-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/01/Ant-Group-Cyril-Han-2025-Haodf-Conference-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/01/Ant-Group-Cyril-Han-2025-Haodf-Conference.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151634" class="wp-caption-text">Photo of Ant Group president Cyril Han speaking during the 2025 Haodf Conference. Photo courtesy of Ant Group.</figcaption></figure>
<ul>
<li aria-level="1"><a href="https://www.sfabric.com/index.en.html">Smart Fabric</a>, an intelligent manufacturing internet company, has raised USD 460 million in a strategic Series C++ funding round. The round was led by CSTC, with Maximum Capital serving as the financial advisor. Founded in 2014, the company integrates textile manufacturing processes using technology to streamline operations for textile and apparel brands. —<a href="https://36kr.com/p/3120977168437255">36Kr</a></li>
<li aria-level="1">Deemos, a 3D generative model company, has secured an eight-figure USD sum in a Series A funding round co-led by Meituan’s DragonBall Capital and ByteDance, with continued support from existing investors HongShan and MiraclePlus. Lighthouse Capital acted as the financial advisor. The funds will further the development of its <a href="https://hyper3d.ai/">Hyper3D</a> series, centered on the Rodin model. Deemos has established collaborations with Amazon, ByteDance, and Unity, among others, to expand applications in gaming, e-commerce, and 3D printing. —<a href="https://36kr.com/p/3120535588044549">36Kr</a></li>
<li aria-level="1"><a href="https://www.juli-china.com/en/">Juli Automation</a>, an electric drive equipment manufacturer, has completed a funding round, raising a nine-figure RMB sum. CMG-SDIC Capital led the round, with support from CRRC Capital and Svolt Capital. The funding will support R&amp;D and global capacity expansion. —<a href="https://36kr.com/p/3118354325573632">36Kr</a></li>
<li aria-level="1"><a href="https://en.pulse-x.com/">PulseX Laser</a>, an ultrafast laser solution provider, has raised tens of millions of RMB in a pre-Series A+ funding round co-led by CDC Investment Corporation and Wanlian Tianze. Top Capital served as the financial advisor. The company, founded in 2020, focuses on industrial-grade ultraviolet laser technology for applications in non-metal and precision machining. —<a href="https://36kr.com/p/3116682675212547">36Kr</a></li>
<li aria-level="1">Westlake Robotics, an embodied intelligence startup, has closed its extended angel round of financing with nearly RMB 100 million. JinkoSolar’s corporate venture capital fund and Mercedes-Benz Capital Investments co-led the investment, with follow-on investment from Tisiwi. Lighthouse Capital acted as the financial advisor. The funds will accelerate the development of general-purpose embodied AI models and humanoid robots, targeting commercialization and product iteration. —<a href="https://36kr.com/p/3115317918563847">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Endowus, Employment Hero, BukaPO, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Endowus, a Singapore-based wealth management platform, secured an additional USD 17.5 million, pushing the total raised in its latest funding round to USD 52.5 million. The round drew participation from new investors OSK Ventures and the family office of professional basketball player Jeremy Lin, alongside existing backers Prosus Ventures, UBS, and MUFG.</li>
<li aria-level="1">Employment Hero, an employment management platform, acquired Humi, a Canada-based company, in a deal exceeding CAD 100 million (USD 69.5 million).</li>
<li aria-level="1">BukaPO, a Bali-based culinary marketplace, closed its seed funding round. The round was co-led by the Bali Investment Club and Switzerland’s Elea Foundation for Ethics in Globalization. The investment amount remains undisclosed.</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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The Chinese government is considering selling TikTok’s US operations to Elon Musk, <a href="https://www.bloomberg.com/news/articles/2025-01-14/china-discusses-sale-of-tiktok-us-to-musk-as-one-possible-option">Bloomberg</a> first reported on January 13. This contingency plan is one of several options being debated as ByteDance, TikTok’s parent company, faces a looming January 19 deadline to divest its US business or face an outright ban.
The report highlights that the plan is still in its early stages, with Chinese officials yet to reach a decision. It remains unclear whether ByteDance, TikTok, or Musk have been directly involved in discussions. A TikTok spokesperson declined to comment when contacted by Bloomberg, dismissing the report as “pure fiction,” while X did not respond to the media outlet’s requests for clarification.
This development adds a new dimension to the ongoing TikTok saga, which has seen US lawmakers and courts intensify scrutiny of the app due to concerns over national security and data privacy.
<h3>How TikTok got here</h3>
TikTok’s legal challenges began in April 2024, when US President Joe Biden signed bipartisan legislation requiring ByteDance to divest TikTok’s US operations to mitigate national security risks. The US government has argued that ByteDance’s control leaves TikTok vulnerable to Chinese intelligence laws, which could compel data sharing with Beijing. Critics have also warned that TikTok’s algorithm could be exploited to manipulate public opinion.
On January 10, the US Supreme Court heard <a href="https://kr-asia.com/trumps-tiktok-plea-fails-to-sway-the-supreme-court">oral arguments</a> about TikTok’s future, with justices raising pointed questions about ByteDance’s ownership. Their inquiries suggested an inclination to uphold the divest-or-ban law. If enforced, the law would prohibit app stores and internet providers from supporting TikTok, rendering the platform effectively inaccessible in the US.
Adding complexity, President-elect Donald Trump has requested the Supreme Court delay the law’s enforcement, arguing that the timeline leaves his administration no room to pursue a “political resolution.” Trump’s team has proposed alternatives, such as a negotiated sale, to address national security concerns while keeping TikTok operational in the US.
<figure id="attachment_151416" aria-describedby="caption-attachment-151416" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="wp-image-151416 size-large" src="https://console.kr-asia.com/wp-content/uploads/2024/12/DJT-Donald-Trump-Reno-Nevada-December-2023-New-1024x683.jpg" alt="Photo of US President-elect Donald Trump." width="1024" height="683" srcset="https://console.kr-asia.com/wp-content/uploads/2024/12/DJT-Donald-Trump-Reno-Nevada-December-2023-New-1024x683.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/12/DJT-Donald-Trump-Reno-Nevada-December-2023-New-300x200.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2024/12/DJT-Donald-Trump-Reno-Nevada-December-2023-New-768x512.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/12/DJT-Donald-Trump-Reno-Nevada-December-2023-New-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/12/DJT-Donald-Trump-Reno-Nevada-December-2023-New.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-151416" class="wp-caption-text">In a shift from his stance during his first term in office, US President-elect Donald Trump (pictured) <a href="https://kr-asia.com/tiktok-ban-in-limbo-as-trump-seeks-supreme-court-intervention">filed an amicus brief</a> in December 2024, seeking to delay enforcement of the TikTok divest-or-ban law to allow time for a “political resolution.” According to <a href="https://www.cnbc.com/2025/01/13/china-considers-selling-tiktok-us-operations-to-musk-bloomberg-.html">CNBC</a>, Trump’s rhetoric on TikTok softened after a February 2024 meeting with billionaire Jeff Yass, a Republican megadonor, ByteDance investor, and stakeholder in the parent company of Truth Social, Trump’s social media platform. Photo source: Donald Trump’s <a href="https://www.donaldjtrump.com/news/42e0cc6d-5fa4-4d2a-aaf6-4f1d43f7f90d">official website</a>.</figcaption></figure>
<h3>Musk’s fit as a buyer</h3>
Elon Musk’s potential role in TikTok’s future raises questions about his suitability as a buyer and the broader implications for the platform. Musk has experience managing large-scale social media operations through X, though his leadership has been polarizing. While critics point to <a href="https://kr-asia.com/tiktoks-ticking-clock-the-apps-fate-in-the-us-hangs-in-the-balance">erratic decision-making and controversial changes</a> at X, Musk’s willingness to take bold risks and make transformative decisions could align with TikTok’s needs in the face of intense scrutiny.
TikTok’s massive user base and data collection capabilities align with Musk’s ambitions in artificial intelligence. His artificial intelligence company, xAI, could benefit significantly from TikTok’s vast datasets, enhancing its AI model development. Musk’s public opposition to banning TikTok, framed as a matter of free speech, further positions him as a potential buyer who might bridge divides in the current debate.
Additionally, Musk’s rapport with Chinese officials, fostered through Tesla’s successful operations in Shanghai, could aid in navigating the geopolitical sensitivities surrounding TikTok. However, the financial feasibility of such a purchase remains uncertain. Bloomberg analyst estimates place the valuation of TikTok’s US operations at USD 40–50 billion, and Musk would likely require external financing to proceed, given the debt burden from his USD 44 billion acquisition of X.
The Chinese government’s consideration of Musk as a buyer reflects the urgency of complying with US requirements while preserving ByteDance’s interests. Bloomberg claims that China holds a golden share in a ByteDance affiliate, giving it influence over strategic decisions, including any sale involving TikTok’s proprietary algorithm. Any such deal would also face intense scrutiny from US regulators, who would evaluate Musk’s capacity to address national security concerns.
As the January 19 deadline approaches, ByteDance, TikTok, and the Chinese government face critical decisions. Alternatives, such as a negotiated pause in enforcement or a sale to another buyer, remain on the table. Other potential buyers, including Frank McCourt and Kevin O’Leary, have also expressed interest.

China weighs selling TikTok’s US operations to Elon Musk as ban nears

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