Hearti Lab's founder denies investors' allegations of fraud

This week’s On the Rise looks at why investors are angry about Hearti Lab, the rise of cleantech in Indonesia, and the protests against AI. [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: - [Why Hearti Lab’s investors are claiming fraud]( - The rise of cleantech in Indonesia - What’s behind the growing anger over AI Hello {NAME} , It’s been almost 20 years since I graduated law school, but a lot of what I learned there has come in handy in my years as a journalist. Criminal law? Check. Business law? Check. Criminals in business law? Check and check. But in all that time, I don’t think I’ve ever used anything that I learned in contract law. I still remember some of it, and what I remember was not fun. What I remember most is my law professor confusing the hell out of me by arguing in circles on whether something was or was not a contract. The experience apparently scarred me so much I actually winced when I read my colleague Candice’s Big Story about Hearti Lab. The company, which aimed at using blockchain and AI technology to offer insurance to those who usually can’t get insured, is being wound up. Unfortunately, Web3 companies shutting their doors isn’t that uncommon, but a number of Hearti’s investors are upset because of the contracts they claim they made with Hearti’s founder, Keith Lim. They’re claiming fraud. The story is a lesson in the importance of founders and investors knowing the difference between what is and what isn’t a binding agreement. In our second Big Story of the week, my colleague Peter looks at the rise of cleantech, which is shaping up to be the next hot market for tech investors in Indonesia. The sector has raised US$77.5 million so far this year. And finally, I’ll tell you about the protests and anger being directed at companies using AI. Spoiler alert: A lot of people are afraid they’re going to lose their jobs, and some are already starting to point fingers. -- Scott  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [12 lawsuits and a liquidation later, legal brawls continue for Hearti Lab’s founder]( Founder Keith Lim has denied creditors’ allegations, saying, “If anyone has evidence of fraud, they should contact the relevant authorities.” 2️⃣ [Indonesia’s next hope: Cleantech with a dash of agriculture, waste management]( The urgency of addressing climate change, combined with government support for the sector, makes it an attractive investment proposition.  --------------------------------------------------------------- AI ODYSSEY Promising AI projects we’re noticing. Protests and AI anger grow as Google wrecks the internet Science fiction writers had it all wrong. The [villains]( of the AI world aren’t who you think they are. Most Hollywood-style movies portray villains as unscrupulous, often military-based, technology-focused companies that create equally unscrupulous murder bots like Skynet or Ultron. But in the real world, instead of developing military applications, the villains are focused on - check notes - advertising, healthcare, and firms looking to cut costs in the workplace, just to name a few. Why are we calling them villains? Because heroes don’t usually face this much anger. In a [series of protests]( over the past week, many people around the world have voiced their frustration not with the technology, but what the companies are doing with it. At a strike in California last week, nurses were upset that their employer, Kaiser Permanente - the state’s second-largest employer - was moving too fast in bringing generative AI into the healthcare industry. Nurses [argued that]( this was being done at a speed that could endanger patients and possibly threaten jobs. While it was almost never in the headlines, every story eventually turns to job security. If you want to know who the villains are, look for the people whose jobs aren’t on the line. Of course, in some situations, the people making the AI and using it to threaten jobs are the same. Google, which has drawn numerous [comparisons to Skynet]( over the years, became the focus of much of the week’s anger following the company’s AI-heavy announcements at its annual [I/O conference](. The company introduced an AI-enhanced Google search that will do our googling for us. It may sound harmless, but the technology has the potential to [disrupt]( just about everything we know about the web. With this newest iteration of Google, the popular search engine would no longer offer a list of related websites. Instead, when people ask Google a question, the software will conduct the search in the background, [scrape the data]( and then provide an analysis of what it finds using genAI. No more clicking through websites. Google will handle it all, which means it will have unprecedented control over our news, travel plans, digital content, and even, uh, adult entertainment. This move could turn the company that opened the internet to billions just 20 years ago into a walled garden, reminiscent of [America Online]( circa 2000. Even that may not seem so bad, until you remember how Google earns its money, which includes taking money from customers who want to have search results ranked higher. A [recent article]( suggests that the use of “affiliate marketing” was so prolific that it was hurting the quality of Google’s search results. Basically, the summary you get could all be based on paid content. Think you can avoid this by using an alternative search engine? Google commanded a 88% market share in search, as of [2022](. Microsoft is currently the second-largest player in web search, with a market share of about 6.5%. Microsoft has invested a total of [US$13 billion into OpenAI]( which already has Bing integrated with ChatGPT. The largest company without an AI-search product is Yahoo, which controls a paltry 2% of the market. Will people care? Casey Newton over at [Platformer]( said it best. “I suspect billions of people will be happy to receive their answers to complicated queries directly on the search results page, uninterested in where the information comes from, so long as it’s accurate enough.” That could spell bad news for small companies and startups that may now need to pay their way into your AI search. Under the old Google search, diligent researchers could find information on even the smallest startups. Now it remains to be seen if readers will even bother looking beyond what the AI offers. -- Scott  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [China and US talk AI]( Officials from both countries affirmed the commitment from their top leaders to reduce AI risks. 2️⃣ [Climate tech startup’s green mining ambitions]( BaniQL is trying new methods to reduce water, energy, and chemical use to minimize the ecological impact of nickel mining in Indonesia. The company raised a US$1.6 million seed round led by Beenext. 3️⃣ [Tesla to build China data center to power global autonomous driving]( The data center will develop algorithms that could power Tesla’s self-driving technology globally. 4️⃣ [Web3 development firm secures $6m]( Singapore-based Chainstack provides tools and services that allow developers to create, deploy, and scale blockchain applications without needing to manage the underlying infrastructure. 5️⃣ [VNG subsidiary becomes Nvidia’s latest SEA partner]( GreenNode, an AI GPU cloud provider under VNG Digital Business, said that it has been providing the Nvidia H100 Tensor Core GPUs to business clients since April.  --------------------------------------------------------------- FYI 1️⃣ [OpenAI’s long-term AI risk team has disbanded]( Following the departures of several researchers, OpenAI has disbanded its research team that focused on mitigating the potential risks of AI outwitting and overpowering humans. 2️⃣ [Ex-staff sues fintech unicorn Rapyd, alleges $1.1m in unpaid commissions]( The UK-based firm has pushed back, saying its clients made “round-tripping” transactions that invalidated commissions. ---------------------------------------------------------------  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]( From local heroes to global players, Saigon Summit unites the brightest minds in tech, from Vietnam and beyond, to ignite collaboration and innovation. Join executives from Monk's Hill Ventures, Social Bella, and Selex Motors as they share their insights on funding, regional expansion, and the future of mobility. Make Vietnam’s tech ecosystem a global force to be reckoned with - [get your ticket now!]( [Tech in Asia Conference Kuala Lumpur 2024 : Malaysia on The Rise on July 24-25]( We'll be joined by some amazing speakers, including Khailee Ng, managing partner of 500 Global, who will deliver a keynote speech on opportunities in Malaysia’s tech ecosystem; Kah Meng Wong, co-founder of Funding Societies, who will share his insights on the Islamic fintech industry; and Dione Song, CEO of Love, Bonito, who will talk about business expansion beyond Asia. Don't miss out - [purchase your tickets]( today! [Product Development Conference (Jakarta, 25-26 June 2024)]( Ready to refresh your product development skills? Learn from industry leaders like Zoho, DANA Indonesia, and more to level up your product game! Discounted tickets vanishing faster than a viral tweet! Score 35% off before prices rise May 22nd. [Secure your tickets]( now to sharpen your product skills! [Tech in Asia’s Founders Meetup in Vietnam on May 30]( Founders Meetup brings together leading minds from across the tech industry. Whether you’re a founder, an investor, or something in-between, the event is a great opportunity to connect with people from across the tech ecosystem, learn about new trends and opportunities, and be part of the exciting energy of Vietnam's tech scene. [Use the code VNTIASPECIAL10 to get 10% off your ticket now!]( [Saigon Summit Exclusive: Kickoff Mixer on May 29]( Forget awkward icebreakers - May 29’s Kickoff Mixer is your fast track to building meaningful connections. Mingle with fellow tech enthusiasts, industry veterans, speakers, and partners, all while enjoying panoramic city views and delicious treats at The Sentry P. This event is complimentary for Saigon Summit Pro Pass holders. Please [confirm your slot on our guest list via this link](. [Saigon Summit Exclusive: AWS GenAI Showcase on May 30]( The future of AI is generative – get a front-row seat to the latest advancements. This Saigon Summit exclusive features top startups unveiling cutting-edge genAI solutions that can revolutionize your business and give valuable insights for your own AI journey. Connect with leading founders, investors, and enterprise innovators, and learn from experts who have successfully implemented genAI solutions. Seats are limited, so [RSVP today!]( ---------------------------------------------------------------  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? 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