Forget Silicon Valley, the Future of AI is Here
Discover why ASEAN is emerging as the new hotspot for GenAI innovation in 2025, offering lower valuations and sustainable growth opportunities.
ASEAN GenAI
Forget Silicon Valley, the Future of AI is Here
Why ASEAN is emerging as the hotspot for GenAI innovation in 2025
As we close out 2024, it's time to set our sights on the resolutions and goals for 2025. If you're an AI/ML student, a recent graduate, a solopreneur, or someone dreaming of building the next big startup, ASEAN should be at the top of your list.
ASEAN Generative AI Startups Landscape (Source: GenAI Fund)
You might be asking: Why ASEAN? Isn't the US still the epicenter of AI innovation? While that's partially true, the GenAI landscape is shifting rapidly, and ASEAN is emerging as a hotbed of opportunities. This insight comes directly from the first-ever ASEAN GenAI Startup Report, produced by GenAI Fund, based on extensive research and analysis of the region's burgeoning GenAI ecosystem. Here's why ASEAN should be on your radar for 2025:
Key Advantages of ASEAN for GenAI
- Lower ValuationsGenAI startups in ASEAN are currently valued lower than their US counterparts, making it a more accessible entry point
- Sustainable GrowthASEAN startups prioritize sustainable business models with a strong emphasis on profitability from the start
- Second Mover AdvantageASEAN startups can learn from the successes and failures of first movers in the US
- Corporate InvestorsBig tech companies are actively seeking to acquire GenAI startups to accelerate their own AI initiatives
The Big Three: ASEAN's GenAI Powerhouses
ASEAN GenAI Startups by Country (Source: GenAI Fund)
The ASEAN GenAI Startup Report by GenAI Fund reveals a dynamic landscape with Singapore, Vietnam, and Indonesia leading the charge in terms of GenAI startup concentration. Let's take a closer look at each of these countries and what makes them stand out:
1. Singapore: The Established Hub
44% of GenAI Startups
Strengths:
Singapore boasts a business-friendly environment, robust infrastructure, a diverse talent pool, access to funding, and strong government support for AI initiatives. It's no wonder that Singapore continues to attract a significant number of GenAI startups.
Evolution:
While Singapore currently leads, its dominance is expected to slightly decrease in the coming months. This is partly due to the rising costs and a potential shift towards remote talent, particularly with startups outsourcing development work to countries like Vietnam. However, Singapore is projected to continue producing a higher proportion of well-funded, leading startups in the region as it moves up the value chain.
2. Vietnam: The Rising Star
27% of GenAI Startups
Strengths:
Vietnam is rapidly becoming ASEAN's GenAI development epicenter, fueled by a large pool of highly skilled and affordable tech talent. The country's cost-effectiveness combined with its technical prowess is attracting both local and international startups to set up development teams in Vietnam.
Momentum:
Vietnam is expected to witness a substantial increase in its GenAI startup count, potentially surpassing Singapore in the next 18 months. The government's proactive support for AI literacy and collaboration with tech giants like Google is further boosting the sector. Vietnam has the potential to become a global powerhouse in GenAI if it can successfully navigate the challenges of upskilling its workforce and achieving GTM success with its solutions.
3. Indonesia: The Sleeping Giant
13% of GenAI Startups
Strengths:
Indonesia has a massive population of over 280 million, making it an incredibly attractive market for B2C GenAI startups. While its GenAI startup scene is still developing, the country's potential for growth is immense.
Future:
Indonesia is expected to experience a surge in B2C GenAI startups in the coming years. The success of B2B/B2G startups like Meeting.ai, which leverages local language data and focuses on regional needs, demonstrates the potential for tailored solutions in Indonesia. The country has a unique opportunity to learn from its neighbors' experiences and implement successful AI initiatives to cater to its large population.
The Foundation Model Landscape
A look at what ASEAN GenAI startups are using
Top Foundation Models Used by GenAI Startups in 2024 (Source: GenAI Fund)
Here are some key trends emerging in the ASEAN region:
| Trend | Description | Examples |
|---|---|---|
Open Source Adoption | A significant number of startups are turning to open-source models like Meta's Llama (36%) and Hugging Face (33%). This allows for greater flexibility, customization, and the potential to build proprietary models tailored to specific needs and local languages. | Llama 3 (36%), Hugging Face (33%) |
Customization is Key | Startups are leveraging proprietary data and fine-tuning techniques to differentiate their offerings and build defensibility against potential competition from Big Tech or the foundation model providers themselves. | AI Hay (Vietnam), Eklipse.gg (Vietnam), Typhoon (Thailand) |
Model Aggregators | Platforms like Amazon Bedrock, which allow for easy switching between different models, are further empowering startups to maintain flexibility and explore different options. | Amazon Bedrock, Claude (31%) |
Examples of Innovation
AI Hay (Vietnam) uses Llama 3 to optimize its social platform for Vietnamese and local research-based queries.
Eklipse.gg (Vietnam) also utilizes Llama 3 to enhance its content creation bot for gaming streamers.
Typhoon (Thailand) is building a Thai LLM specifically for the Thai language.
Resolutions for 2025
As we step into 2025, it's clear that ASEAN offers a wealth of opportunities for anyone eager to make their mark in the GenAI space. Whether you're a student, a recent graduate, a solopreneur, or an aspiring founder, this region represents a growing frontier of innovation and impact.
Here's how you can make the most of the ASEAN GenAI opportunity:
- Dive Deep into ASEAN: Invest time in understanding the unique needs, challenges, and opportunities within each ASEAN country. Tailor your approach to leverage the region's diversity effectively.
- Build Connections: Engage with ASEAN's vibrant ecosystem of AI builders, founders, and investors. Collaboration is key in a region rich with expertise and potential.
- Prioritize Local Relevance: Create solutions that address specific regional challenges while staying adaptable to broader global markets. Success in ASEAN often hinges on knowing how to localize your approach.
- Focus on Sustainability: Avoid the pitfalls of rapid, unsustainable growth. Instead, aim to build businesses that are both profitable and resilient for the long term.
- Stay Ahead of Trends: Embrace the adoption of open-source models, explore fine-tuning techniques, and remain agile with model aggregators to differentiate your offerings.
The ASEAN GenAI landscape is evolving rapidly, and 2025 is the perfect time to become part of this dynamic growth story. What's your game plan? Share your thoughts, resolutions, or aspirations in the comments below. Let's shape the future of AI together!
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