At this year's World Economic Forum in Davos, numerous business and political leaders gathered, widely believing that US tech giants dominated the Artificial Intelligence (AI) field, while China and Asia seemed to lag behind. However, this perception began to be challenged after the attendees departed.
First, an unassuming Chinese hedge fund, DeepSeek, captured global attention. Its AI division launched a large language model called R1, performing comparably to OpenAI's latest models. Even more surprisingly, DeepSeek claims to have trained it for only $6 million, a stark contrast to the billions of dollars Silicon Valley companies invest in their AI platforms. This breakthrough not only showcased Chinese innovation in AI but also suggested the vast potential for AI development, with startups anywhere having the possibility to emerge.
Image Source Note: Image generated by AI, licensed through Midjourney.
Meanwhile, prominent Japanese investor Masayoshi Son appeared at the White House, jointly announcing with President Trump a $500 billion collaborative project, Stargate, led by his SoftBank Group, aiming to accelerate America's AI infrastructure development. SoftBank also pledged $40 billion to OpenAI on April 1st, boosting the AI pioneer's valuation to $300 billion. Son, the 67-year-old billionaire, after significant losses from the Vision Fund, is once again a major player in the AI field.
In Southeast Asia, Johor, southern Malaysia, is rapidly emerging as one of the world's largest data center corridors. Unlike traditional data centers, these new facilities specialize in training large language models and no longer need to be located near clients. They can be built in areas with abundant and inexpensive land, water resources, and electricity. Malaysia is working to provide these resources, aiming to secure a place in the next technological wave.
From DeepSeek's breakthrough to SoftBank's massive investment and Malaysia's data center initiative, these stories convey a crucial message: The AI revolution is not confined to Silicon Valley; Asian companies are becoming key players. Investors and policymakers ignoring this dynamic and promising region risk missing significant opportunities.
