Chinese technology startups are scrambling for fresh funding to capitalise on the growing excitement around AI, fueled by DeepSeek‘s AI breakthrough and President Xi Jinping’s recent support for private enterprises. Companies such as AI-powered optics startup Rid Vision, brain-computer interface firm AI CARE Medical, and robotics maker Shanghai Qingbao Engine Robotics are among those seeking new onshore investments, according to venture capitalist Andrew Qian.
The surge in investment interest comes after a long period of stagnation in China‘s venture capital sector. New Access Capital, which has invested in several AI startups, noted that many businesses are now attracting both cooperation discussions and investment offers. The DeepSeek case has highlighted the rise of innovative Chinese tech firms, moving away from previous trends of copycat startups, and offering hope for a revitalised venture capital environment.
Despite the growing investor enthusiasm, challenges remain. The strict regulatory scrutiny of initial public offerings (IPOs) in China, coupled with heightened tensions between China and the US, complicate the prospects for exit strategies. Venture capital firms are particularly focused on AI-related businesses, with several companies in sectors like AI image generation and medical tech securing significant funding in recent weeks.
However, the overall fundraising environment remains difficult. Data shows a sharp decline in venture capital investments since 2021, and while investor sentiment has improved post-DeepSeek, concerns over the regulatory landscape and geopolitical tensions persist. Some analysts remain cautious about the near-term outlook for IPOs, especially for offshore listings.
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Three men have been charged with fraud in Singapore as part of an investigation that may be linked to the illegal transfer of advanced Nvidia chips to the Chinese AI company, DeepSeek. The United States is also probing whether DeepSeek used US-made chips, which are prohibited from being shipped to China. This case is part of a wider investigation into potential AI chip smuggling operations involving several individuals and companies across countries, including Singapore.
The charges focus on two Singaporeans, Aaron Woon Guo Jie and Alan Wei Zhaolun, who are accused of falsely claiming that Nvidia chips would not be transferred to unauthorised recipients. A third man, Chinese national Li Ming, is charged with committing similar fraud regarding the shipment of servers. These actions are believed to be connected to DeepSeek’s use of Nvidia chips, although the authorities have not confirmed the company’s involvement.
If convicted, the men could face up to 20 years in prison, a fine, or both. Singapore’s authorities have been actively investigating the smuggling network, with police recently arresting nine individuals in a raid across 22 locations, seizing records and electronic evidence.
Nvidia’s business in Singapore is substantial, making it the company’s second-largest market after the US. However, only a small percentage of its revenue comes from direct shipments to the country. Singapore’s government has emphasised its commitment to strict enforcement of export controls, underscoring that the nation will not tolerate any attempts to evade international regulations.
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In Tokyo, a groundbreaking demonstration of an AI-driven humanoid robot named AIREC showcased its potential in elderly care. The 150-kg (330 lb) robot, designed to assist with tasks such as changing diapers and preventing bedsores, gently moved a man lying on his back to his side. AIREC, a prototype for Japan’s rapidly ageing society, addresses the country’s severe shortage of aged-care workers, exacerbated by a declining birth rate and a shrinking workforce.
With Japan‘s ageing population and the ‘baby boomer’ generation all turning at least 75 by the end of 2024, the need for technological solutions in elderly care has become urgent. The nursing sector is struggling with a lack of workers, and while foreign workers have filled some of the gap, their numbers remain low. Experts, like Takashi Miyamoto, suggest that technology, especially robots like AIREC, is crucial to addressing the future challenges in elderly care.
Currently, robots like AIREC are still being developed and tested, with Sugano, the Waseda University professor leading the project, predicting it could be ready for use in facilities by 2030. While robots are making small strides in elderly care, such as monitoring sleep conditions or assisting with simple tasks, experts believe a collaboration between humans and robots will be the future of care. However, the high cost and technological precision required for humanoid robots to interact safely with humans remains a challenge for widespread adoption.
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Europol announced on Friday that two dozen people have been arrested for their involvement in a criminal network distributing AI-generated images of child sexual abuse. This operation marks one of the first of its kind, highlighting concerns over the use of AI in creating illegal content. Europol noted that there is currently a lack of national legislation addressing AI-generated child abuse material.
The primary suspect, a Danish national, operated an online platform where he distributed the AI-generated content he created. Users from around the world paid a ‘symbolic online payment’ to access the material. The platform has raised significant concerns about the potential misuse of AI tools for such criminal purposes.
The ongoing operation, which involves authorities from 19 countries, resulted in 25 arrests, with most occurring simultaneously on Wednesday under the leadership of Danish authorities. Europol indicated that more arrests are expected in the coming weeks as the investigation continues.
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At a conference in Hyderabad this week, pharmaceutical companies highlighted the growing role of artificial intelligence in evolving the drug development process. Companies like Amgen and Parexel showcased how AI can reduce trial times, with Parexel demonstrating a model that speeds up drug safety reports by 30-45 minutes. Industry experts believe that AI can potentially halve the costs and time needed to develop drugs, cutting down the process from over a decade to just a few years.
Beyond speeding up trials, AI is also aiding in drug discovery and medical diagnostics. For instance, AI is being used to repurpose existing drugs for new uses and to analyse medical images, potentially identifying conditions such as cancer that might be missed by human doctors. Medtronic’s CTO stressed that integrating AI across the industry is essential to its future success.
Despite these technological strides, the conference was overshadowed by ongoing uncertainty regarding US President Trump’s proposed tariffs on pharmaceutical imports. Companies, particularly those based in India, expressed concern over the potential impact of these tariffs, with some, like Dr Reddy’s, opting to take a ‘wait and watch’ approach until further clarity emerges. This tariff uncertainty remains a pressing issue for India’s pharmaceutical industry, which is a major exporter of affordable drugs to the US.
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Deutsche Telekom CEO Tim Hoettges has urged Germany and Europe to invest more in artificial intelligence and data centres to stay competitive with the US and Asia. Speaking after the release of the company’s annual results, Hoettges stressed the need for Europe to increase its computing power, citing a growing demand for data centres that he expects to rise by at least 30%. Deutsche Telekom is already expanding its infrastructure with plans to build four new data centres in Europe, aiming to create one gigawatt of capacity.
Hoettges also emphasised the importance of AI for Europe’s economic growth and sovereignty in the digital age. His comments come as Europe strives to catch up with major AI investments made by the US, with the European Commission pledging to mobilise 200 billion euros for AI development. This contrasts with the US, where private companies have committed up to $500 billion to AI infrastructure.
The call for greater AI investment follows a wave of AI advancements, such as China’s DeepSeek model, which has begun to challenge Western competitors. Hoettges warned that Germany must act quickly or risk falling behind in the global AI race.
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Inception, a Palo Alto-based startup founded by Stanford professor Stefano Ermon, has unveiled an innovative AI model based on diffusion technology. Unlike traditional large language models that generate text sequentially, Inception’s diffusion-based model can produce large blocks of text in parallel, making it up to 10 times faster and more cost-efficient. The company claims its model offers similar capabilities to existing LLMs but with significantly improved performance.
The diffusion model operates differently from the typical approach of LLMs, which generate text word by word. Instead, it starts with a rough estimate and refines the output all at once, allowing for faster processing. Ermon, who has been researching this technology for years at Stanford, believes it will revolutionise AI by enabling more efficient use of computational resources, particularly GPUs. Inception already boasts several Fortune 100 companies as clients, attracted by its promise to reduce AI latency and costs.
Inception’s model can handle various tasks, including code generation and question answering, and is designed for flexible deployment options such as API, on-premises, and edge devices. This breakthrough technology is expected to lead to more accessible and scalable AI solutions, positioning Inception at the forefront of AI development.
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Amazon has unveiled Alexa+, a major upgrade to its voice assistant, integrating advanced AI to enhance interactions.
The new version can process multiple prompts in sequence, store user preferences, and manage tasks such as making reservations and sending reminders. AI-powered improvements aim to make Alexa more conversational and responsive.
The company has invested heavily in the technology, incorporating AI models through its Bedrock platform. Startup Anthropic contributed to development, with its Claude AI underpinning Alexa+.
The service will be free for Amazon Prime members, while non-Prime users will pay $19.99 per month. A phased rollout begins in March.
Alexa+ will integrate seamlessly with Amazon devices, including Ring doorbells, allowing users to access video recordings and control smart home features. It can also analyse documents, helping users understand contracts and regulations.
Industry competition remains strong, with Apple and Google also enhancing their voice assistants through AI.
Amazon hopes the overhaul will boost engagement, as Alexa usage had declined due to limited advancements. The company’s stock rose 1.7% following the announcement, reflecting investor confidence in the AI-driven update.
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China’s embrace of DeepSeek’s AI models has expanded beyond tech companies into everyday household appliances. The startup, based in Hangzhou, has seen a surge of support from Chinese manufacturers, with home appliance giants such as Haier, Hisense, and TCL Electronics announcing plans to incorporate DeepSeek’s AI models into their products. These appliances, already equipped with voice-activated commands, are set to become even smarter with DeepSeek’s models, which promise greater accuracy and functionality.
DeepSeek has made waves in the AI sector this year, with its large language models competing against Western systems but at a fraction of the cost. This has sparked immense pride in China, where the company is seen as a testament to the country’s growing tech capabilities in the face of US efforts to limit its advancements. The company’s founder, Liang Wenfeng, has received significant recognition from Chinese authorities, and DeepSeek is expected to soon release its next-generation R2 reasoning model.
The impact of DeepSeek’s technology is already being felt across industries. From robotics to smart appliances, its AI models offer improved precision in tasks such as obstacle avoidance in robot vacuum cleaners. These devices are expected to better understand complex commands, like ‘Gently wax the wooden floor in the master bedroom but avoid the Legos,’ making everyday life more efficient and intuitive.
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Baidu is set to launch the next generation of its Ernie AI model, the Ernie 4.5, in mid-March. This upgraded version will feature improved reasoning capabilities and enhanced multimodal functions, allowing it to process and integrate a variety of data formats, including text, images, audio, and video. Baidu also plans to make the Ernie 4.5 series open source from June 30, marking a significant shift in its approach to AI development.
The Chinese tech giant has faced fierce competition in the AI race, particularly from the rising startup DeepSeek, whose models are seen as rivals to leading US systems at a much lower cost. Despite claiming that Ernie’s performance is comparable to OpenAI’s GPT-4, Baidu has struggled to gain widespread adoption of its AI model. The emergence of DeepSeek has further complicated Baidu’s aspirations in the sector, leading the company to reassess its strategy.
Baidu’s CEO, Robin Li, who once advocated for keeping AI models closed-source, has acknowledged the success of DeepSeek and other competitors. He now views the open-source approach as essential for the future of AI development. This shift comes as Baidu continues to compete with other tech giants, including Alibaba, which recently announced its plans to make its video and image-generating AI model, Wan 2.1, open source.
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