Investors are flocking to data centre operators in the Asia Pacific region, driven by the growing demand for AI services and robust market valuations. Major transactions, like Blackstone’s $15.58 billion acquisition of Australia’s AirTrunk, have set high benchmarks for the sector. Industry experts predict that the region’s data centres will continue to see strong valuations due to their nascent stage and promising growth, despite concerns about insufficient infrastructure in some areas.
Several notable investment opportunities have surfaced, such as the sale of stakes in Indonesian data centre NeutraDC and Telkom’s data centre arm, which could be valued at over $1 billion. These deals reflect a broader trend of investors seeking high-growth opportunities in the region. NeutraDC’s expansion plan, which aims to increase capacity to 500 megawatts by 2030, has made it an attractive target, with valuations potentially exceeding 20 times core earnings.
The Asia Pacific region has become a leader in global data centre mergers and acquisitions, surpassing half of the world’s total transactions this year. This surge is attributed to the booming AI demand, with companies rapidly expanding their data processing capacity. However, some investors warn that the sustainability of these high valuations will depend on overcoming challenges like power shortages and the reliable delivery of new infrastructure projects.
While the long-term outlook for Asia Pacific’s data centre market remains positive, experts predict that growth may slow slightly as new capacity is brought online. Investors will need to navigate execution risks to maintain the sector’s momentum and ensure the continued expansion of data centre infrastructure.
Australia‘s competition watchdog has called for a review of efforts to ensure more choice for internet users, citing Google’s dominance in the search engine market and the failure of its competitors to capitalise on the rise of AI. A report by the Australian Competition and Consumer Commission (ACCC) highlighted concerns about the growing influence of Big Tech, particularly Google and Microsoft, as they integrate generative AI into their search services. This raises questions about the accuracy and reliability of AI-generated search results.
While the use of AI in search engines is still in its early stages, the ACCC warns that large tech companies’ financial strength and market presence give them a significant advantage. The commission expressed concerns that AI-driven search could lead to misinformation, as consumers may find AI-generated responses both more useful and less accurate. In response to this, Australia is pushing for new regulations, including laws to prevent anti-competitive behaviour and improve consumer choice.
The Australian government has already introduced several measures targeting tech giants, such as requiring social media platforms to pay for news content and restricting access for children under 16. A proposed new law could impose hefty fines on companies that suppress competition. The ACCC has called for service-specific codes to address data advantages and ensure consumers have more freedom to switch between services. The inquiry is expected to close by March next year.
This holiday season, millions of shoppers are set to buy gifts online, but tech companies are vying to make AI agents the new shopping assistants. Platforms like Perplexity, OpenAI, and Google are developing AI tools that can browse websites, select products, and even complete purchases. Perplexity recently launched a shopping agent that combines navigation and checkout features, though it’s still ironing out inefficiencies.
AI-driven shopping isn’t without challenges. Early tests show agents struggling with stock availability and delayed purchases, while companies like Perplexity rely on human oversight to address errors. Privacy concerns are also emerging, especially with AI systems accessing billing information. However, partnerships like Perplexity’s with Stripe, which uses single-use payment cards, aim to mitigate risks and provide secure transactions.
These tools could revolutionise online shopping by saving time and uncovering hidden deals, but they also threaten traditional e-commerce models. Retailers and advertisers may resist as fewer consumers visit storefronts and targeted ad opportunities shrink. Despite the hurdles, 2025 is expected to see significant advancements in AI shopping agents, promising a glimpse into the future of effortless online retail.
AI hardware startup Tenstorrent has secured a $693M Series D funding round, valuing the company at over $2.6B. The investment, led by Samsung Securities and AFW Partners, includes participation from Hyundai and Bezos Expeditions, among others. Founded in 2016 and based in Toronto, Canada, Tenstorrent aims to challenge Nvidia’s dominance in the AI chip market.
Tenstorrent’s CEO, Jim Keller, a renowned microprocessor engineer, announced plans to develop AI training servers and expand its engineering team using the new capital. The company has also committed to releasing a new AI processor every two years, with signed customer contracts amounting to nearly $150M. This move positions Tenstorrent among a growing number of startups racing to innovate in AI hardware, alongside competitors such as Axelera, Etched, and Groq.
The funding highlights escalating investor interest in alternative AI chipmakers as demand for cutting-edge computing solutions soars. With its ambitious roadmap and backing from high-profile investors, Tenstorrent is poised to carve out a significant share of the burgeoning AI hardware market.
The Browser Company, creators of the Arc Browser, is developing a new web browser named Dia, centred around artificial intelligence integration. Set to debut in early 2025, Dia aims to expand the company’s reach by offering AI-driven features to a broader audience. Unlike traditional AI tools, Dia is designed as an interactive browsing environment where users can perform tasks like drafting emails, retrieving data, or automating online activities directly through the browser interface.
Initial demonstrations highlight innovative features, including a writing assistant that can suggest sentences or retrieve relevant links and facts. Dia’s natural language commands enable actions such as fetching and emailing documents or scheduling meetings within the browser. A standout capability is its automation feature, where Dia can browse websites like Amazon to fulfil tasks, such as adding items to a cart based on a user’s email list. Despite its potential, early versions may require refinements to ensure precision in task execution.
The Browser Company‘s CEO, Josh Miller, emphasised the vision of creating user-friendly AI tools while keeping Arc’s dedicated user base in mind. Miller acknowledged that Arc’s complexity appeals to a niche audience, whereas Dia’s broader functionality could attract new users and provide sustainable revenue opportunities. As part of the development, the company has launched a dedicated website showcasing Dia’s capabilities and open roles to expand its team.
OpenAI is exploring advertising as a potential revenue model, according to a Financial Times report. While CFO Sarah Friar emphasised that there are ‘no active plans to pursue advertising,’ the company recently hired Shivakumar Venkataraman, a former Google ad executive, signalling interest in the possibility. OpenAI currently relies on subscriptions to fund its costly generative AI models, but rising expenses may prompt a shift in strategy.
The idea of ads doesn’t sit comfortably with OpenAI CEO Sam Altman, who described advertising as a “last resort” during a Harvard Business School chat. Altman has expressed unease about combining ads with AI, calling the prospect ‘uniquely unsettling.’ Still, the financial realities of sustaining and expanding AI tools may leave OpenAI with few alternatives.
As OpenAI balances innovation with business pressures, any move toward advertising could reshape how users engage with tools like ChatGPT. For now, the debate underscores the tension between maintaining accessibility and meeting operational demands.
Nebius Group has secured $700 million through a private placement, attracting investors such as Nvidia, Accel, and Orbis Investments. The AI infrastructure firm, founded by former Yandex CEO Arkady Volozh, aims to enhance its capabilities to serve artificial intelligence developers globally.
The funding will enable Nebius to accelerate its investments in GPU clusters, cloud platforms, and other AI development tools. Having already committed $1 billion in investments by mid-2025, the firm hinted at potential further expansion. With more than half its clientele based in the United States, Nebius is leasing data centre space in Kansas City, Missouri, and exploring additional growth opportunities.
As part of the placement, Nebius issued 33,333,334 Class A shares at $21 per share, reflecting a slight premium to recent Nasdaq trading averages. The financing was oversubscribed, leading to a revised annualised revenue projection of $750 million to $1 billion by the end of 2025.
Nebius also announced it would no longer pursue a previously approved share buyback, citing strong investor interest and favourable market conditions. Chairman John Boynton stated that shareholders who wished to exit had ample opportunity to do so at competitive prices.
Canada’s Competition Bureau has filed a lawsuit against Google, accusing the tech giant of abusing its dominant position in online advertising. The bureau seeks an order for Google to divest two ad tech tools and pay a penalty to ensure compliance with competition laws.
The investigation, launched in 2020, found that Google controls key aspects of the ad tech stack in Canada and allegedly employed tactics to entrench its market power. Google disputes the claims, arguing that the online ad market remains competitive.
The case mirrors global scrutiny of Google’s advertising practices, including a similar lawsuit in the United States and ongoing EU investigations. Google’s earlier offer to sell an ad exchange failed to satisfy European publishers.
South Korean AI chipmakers Rebellions and Sapeon Korea have officially merged, forming a new company valued at approximately USD 928 million. The combined entity will continue under the name “Rebellions,” led by CEO Sunghyun Park. The merger aims to enhance the company’s global competitiveness in the fast-growing AI chip market by leveraging expertise across South Korea‘s telecom, government, and semiconductor sectors.
The merger brings together Rebellions, a fabless AI chip startup established in 2020, and Sapeon Korea, an affiliate of SK Telecom, to combine their strengths in AI chiplet technology. This integration is expected to accelerate innovation and improve efficiency, particularly in developing next-generation AI chips like REBEL, designed to meet the increasing demands of AI applications.
Looking ahead, Rebellions plans to expand internationally, with targeted entry into markets such as the United States, Saudi Arabia, and Japan. Strategic partnerships, including collaborations with SK Telecom and SK hynix, will help fuel the company’s global ambitions and support its expansion efforts.
Airbus, Thales, and Leonardo are exploring plans to establish a European joint venture in the satellite sector, aiming to challenge Elon Musk’s Starlink network. Dubbed ‘Project Bromo’ after an Indonesian volcano, the initiative seeks to create a standalone European satellite company modelled after missile maker MBDA, jointly owned by Airbus, Leonardo, and BAE Systems.
The plan is still in the early stages, but discussions have advanced enough to outline a preferred structure. Instead of one partner acquiring the others’ assets, the proposal envisions pooling satellite resources into a new entity. Leonardo CEO Roberto Cingolani confirmed the MBDA-inspired approach, calling it the most viable model for such collaboration.
This initiative comes as Europe’s satellite industry struggles to compete with Starlink’s rapid growth in low Earth orbit. While the merger talks are separate from Airbus’s impending job cuts, they signal a broader effort to revitalise Europe’s space capabilities in the face of intensifying competition.
