After substantial layoffs, can Naluri nurse itself back to health?

This week’s On the Rise looks at healthtech startup Naluri’s sustainable growth efforts and how tech giants are taking on Nvidia’s AI dominance. [Read from your browser]( On the Rise 🚀 Welcome to On the Rise! Delivered every Tuesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in emerging tech. If you’re not a subscriber, get access by [registering here](. --------------------------------------------------------------- IN FOCUS In today's newsletter, we look at: - [A Malaysian healthtech startup that [ran out of steam from its expansion plans]( - The efforts to unseat Nvidia’s AI dominance Hello {NAME} , This past week, there were many public holidays across the region, which means my colleagues and I had some time off. That’s given me a chance to run outdoors. Since I’m returning to running, I’m still trying to figure out my best pace. In my last run, thanks to my new pair of shoes, I thought I could handle five kilometers in less than 40 minutes (it’s not the toughest goal, I know). Still, that confidence cost me. I ended up running just four kilometers and was gasping for air in the last five minutes. In this week’s Big Story, my colleague Emmanuel spotlights Malaysian healthtech startup Naluri, which shows that companies too can run out of breath from time to time. Having landed fresh capital in 2022, it expanded swiftly into Thailand and quickly ran out of steam. It found success in the early days of the pandemic as Malaysian corporations availed of its physical and mental health assistance services to help their struggling employees. But by 2023, as the tech winter persisted, it was apparent that Naluri could not keep up with the pace of expansion. Emmanuel speaks with Naluri’s CEO, Azran Osman-Rani, on how the company plans to run at a pace it can sustain and its aim to break even by the end of the year. Speaking of races, I explore how a superteam of tech giants - including Google, Intel, and Qualcomm - plan to overtake Nvidia in the race for AI dominance in this week’s AI Odyssey. But first, this week’s Big Story. -- Elyssa  --------------------------------------------------------------- THE BIG STORIES [Despite setbacks, this Malaysian healthtech firm eyes EBITDA breakeven by year-end]( After laying off about a third of its staff, Kuala Lumpur-based health tech startup Naluri is ready once more to grow its business to profitability.  --------------------------------------------------------------- AI ODYSSEY  Can a superteam of tech giants take on Nvidia? Harvard Business School economist Michael Porter [pioneered the idea]( that for a business to flourish, it must have a competitive advantage. That can come in two forms: a cost advantage or a differentiation advantage. The former may be easy to achieve for some industries (e.g. fast fashion), but in the realm of artificial intelligence, if a chip is not from Nvidia, [companies probably wouldn’t use it even if it’s cheap](. Nvidia, known for its graphics processingor units (GPUs) which are used for developing generative AI models, has taken an [enviable 80% market share]( of the AI chip computing space. That is despite its AI chips selling for as much as [US$40,000 each](. In contrast, AI chips of its lagging rival, Advanced Micro Devices (AMD), are [estimated to be sold for US$15,000](. But beyond providing the GPUs to power AI, Nvidia has fostered a large community of AI developers that build consistently using the company’s products. Its monopoly in AI chips has apparently become too much for the world’s biggest tech giants, as they are now banding together to develop an AI software that can run even without Nvidia’s chips, network, or software. A coalition of Google as well as chipmakers Intel and Qualcomm, called the [UXL Foundation]( plans to develop open-source software and tools that would allow tech companies to develop and run machine -learning algorithms that can be used with any chip. You see, when Nvidia thought of a “differentiation advantage,” it thought about everything an AI company could ever need. It has the chip, it has the network where its advanced chips can connect to, and more importantly, it has the software that developers use to fine-tune their AI models. [Reuters reports]( the coalition aims to “mature” its plans in the second half of 2024. The question is, will it work? It’s not the first time an entity has tried to unseat Nvidia from its throne as the king of AI tech. Both [Google]( and Intel have their own AI chips, for example. But software that can take on Nvidia may be a harder undertaking. After all, developers specializing in AI models have been using its software for the last 15 years. Even its next closest competitor in the AI chip race, AMD, has not managed to compete against [Nvidia’s software, Cuda]( - a platform with tools to help developers build AI models and apps. [AMD has been funneling millions of dollars]( to develop software that can take on its rival’s. Still, if UXL Foundation’s goal does flourish, it can be a win not just for developers but for economies worldwide. Just take a look at how mobile app developers in the European Union managed to [bring the giant that is Apple to its knees]( and made it reduce its in-app fees on the App Store. A similar effort on AI may not necessarily mean cheaper chips, but it would definitely increase access to a technology that [could make or break economies in the near future](. That is a win in our books. -- Elyssa  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here]( 1️⃣ [FTX founder gets 25-year prison sentence]( Sam Bankman-Fried was found guilty of seven fraud and conspiracy counts in line with the shutdown of his infamous crypto platform in 2022. 2️⃣ [AI to bring Apple and AI together]( Apple held early-stage talks with Baidu about the possibility of incorporating the latter’s generative AI technology into the former’s products in China, The Wall Street Journal reported. The iPhone maker is proactively seeking ways to comply with Chinese regulations on AI applications for its products in the world’s biggest market. 3️⃣ [GGV Capital splits into two]( The Menlo Park-based VC firm announced that it would divide its business into two different firms, with one focusing on Asia and the other on the US. The Asia entity will be called Granite Asia and will broaden its investment scope to include new markets and asset classes within the Asia Pacific, including Japan and Australia. 4️⃣ [Canva revs up its race to overtake Adobe]( Canva is not hitting the brakes in its bid to overtake Adobe in the graphic design space. Bloomberg reported that the Australia-based startup acquired Affinity, which provides design services catered to professionals. 5️⃣ [True Global Ventures has a new CEO]( Beatrice Lion will oversee the company as it looks into investing in AI-focused startups. Lion has been with True Global Ventures since 2017 and contributed to the VC firm’s efforts in raising US$113 million for its 4 Plus Base Fund in 2021 and US$146 million for the Opportunity Fund in 2022.  --------------------------------------------------------------- FYI 1️⃣ [ByteDance eyes Singapore for genAI push, posts several job openings]( Even with the threat of a shutdown in the US, ByteDance isn’t fazed and is seemingly pushing through with hiring more staff in the US and Singapore for its AI units. 2️⃣ [Hot or not: What SEA investors are betting on and what they’re ignoring]( Tech in Asia’s data show there is one clear industry winner among Southeast Asian investors for the past year. 3️⃣ [‘Humanoid’ robot wave signals change on the production line]( A chief technology officer of a US-based industrial company estimates that more than 80% of manufacturing facilities will be using AI to help in the production line soon. ---------------------------------------------------------------  EVENTS HAPPENING You can also check out a curated list of trending tech events [over here]( and Tech in Asia’s signature events [here](. - [Saigon Summit 2024 : Charting Vietnam’s Tech Future on May 30]( With its population of over 97 million, Vietnam is already a leader in the EV space. In Saigon Summit, we will learn from top players like Selex Motors and Dat Bike on the bigger picture of the industry and the road to sustainability. Grab your tickets to secure the best savings before price increases on April 22 - while stocks last! - [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25]( Embark on a groundbreaking journey of innovation at the inaugural Tech in Asia Conference in Kuala Lumpur, where cutting-edge ideas converge to ignite, connect, and elevate Malaysia’s tech landscape. Celebrate Hari Raya with our special promotion of 45% off on all ticket types. [Grab yours]( while the offer lasts! - [Product Development Conference (Jakarta, 25-26 June 2024)]( This year’s conference, themed around “scaling product innovation from startup to enterprise,” will deliver tailored insights for attendees at any stage of their business journey. This Hari Raya, celebrate togetherness with your friends and colleagues! Enjoy a special Hari Raya package: 6 General Passes or 4 Pro Passes for IDR 1,445k (USD 92). [Get tickets](  - [Tech in Asia’s Founders Meetup in Singapore on April 24]( Amid the slump in the current macroeconomic environment, are VCs now ready to deploy funds? Well, we don’t have the answer, but we know experts that do. Panlists from Square Peg, MSW Ventures, and Antler will shed light into the cautious optimism around funding. They’ll also share their take on the verticals poised for a strong recovery and offer strategic tips to navigate the ongoing tech winter. [Get your ticket now](  --------------------------------------------------------------- That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you soon! [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. 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