Tony Fadell talks AI, building products for SEA in exclusive interview

This week’s On the Rise looks at the iPod creator’s AI predictions, Asia Fund X’s investment plans, and how Chinese EV firms are setting up in SEA. [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: - [Exclusive insights from iPod inventor Tony Fadell]( - Asia Fund X’s investment plans - Chinese EV firms making cars in Southeast Asia. Hello {NAME} I was fortunate enough to grow up during a time when the world was transitioning from analog to digital, and the evolution of technology around music was especially fascinating to me. My earliest memory of listening to music was tuning in to the radio and playing vinyl records on the gramophone. I was amazed when cassette tapes came out a few years later - how did the contents of those huge discs get packed into such small rectangles? My elder brothers started creating mixtapes by putting speakers of two music players together and pressing the “play” button on one and hitting “record” on the other. This was also the time of the Sony Walkman. Having a portable device with earphones meant that you could listen to music anytime - yes, even while you're walking. It wasn’t long before computers came into the scene, along with CDs and the Discman (also from Sony). By the time I was in high school, I took the mixtape idea and started my own business - I made and sold mixed music CDs for kids at school. Sadly, my music bootlegger days ended with the emergence of the iPod and MP3 players. When I finally got my hands on an iPod Classic, I was awestruck. You could now scroll through an entire playlist just by fiddling with the smooth round toggle button. Recently, I got a chance to chat with the man who invented the iPod and co-created the iPhone: Tony Fadell. In an exclusive interview, we talked about how to build great products in Southeast Asia and the future of generative AI. Our premium story also details what Fadell said about his investment firm Build Collective’s plans for the region. Speaking of investment plans, my colleague Huong interviewed Jeffrey Seah, a Quest Ventures partner who recently set up his own VC fund. Her Q&A with him uncovers the idea behind Asia Fund X and its target markets and sectors in Southeast Asia. The region is also the focus of this week’s Making Waves, with my colleague Nikita shining a light on how Chinese electric vehicle (EV) firms are moving their manufacturing facilities to countries in the region. -- Collin  --------------------------------------------------------------- THE BIG STORY 1️⃣[Exclusive insights from Tony Fadell on ChatGPT and the AI gold rush]( The iPod creator-turned-investor talks about AI and the blockchain, how founders should build, and his VC firm’s future portfolio. 2️⃣[Why Asia Fund X targets ‘mainstream-oriented’ founders]( Jeffrey Seah talks about the inspiration behind his new investment vehicle, which has reached its first close.  --------------------------------------------------------------- MAKING WAVES Geography no bar for electric (vehicle) dreams Here’s what happened: - China’s EV firms [are setting up manufacturing facilities]( in Southeast Asia. - This is part of a global pattern, with VinFast taking a [similar approach]( in the US. - EV infrastructure in Asia is also steadily shaping up. Here’s our take: It’s official: Asia’s EV firms are zigzagging across borders, and this has quickly become the most popular way to do business. More interestingly, these companies are looking to set up local units in the countries they're expanding to. There’s a battery of examples for this: China’s BYD plans to set up local manufacturing units in Vietnam, where [“favorable conditions”]( could help the company start making EVs quickly to sell in the country and in other Southeast Asian markets. Vietnam isn’t the only winner here, though. Hozon, another player from China, [will make EVs]( in Thailand for sale in the region. VinFast - Vietnam’s EV poster child - has also [declared its intention]( to venture into Southeast Asia. But setting up manufacturing is just the first step since VinFast’s expansion strategy also includes manufacturing in the US. In 2022, the firm got a [US$1.2 billion package]( to build a manufacturing facility in North Carolina, the biggest economic incentive that the state has given to date. Recently, VinFast rolled out VF8, its first set of wheels for the US. The challenges of entering and selling in a new market are coming up fast and furious, with the firm getting [brickbats]( from critics. Responses like “Yikes” and “return to sender” capture the general feeling about VF8. Notably, founder Pham Nhat Vuong expects VinFast to breakeven by the [end of 2024](. The company also plans to launch an EV pickup truck and a mini car designed for city life. Besides local manufacturing being a boost for businesses and the local economy, other factors are steadily shaping up in favor of EVs too. For instance, infrastructure is a significant concern. While battery firms build up various models, other experiments are underway too. Take the case of Singapore-based Charge+, which has [announced a plan]( to build a highway that can recharge EVs that run on it. While a separate but similar plan is in the works [in Sweden]( Charge+’s ambitious plan is to build a 5,000 kilometer highway across five countries in Southeast Asia: Malaysia, Thailand, Cambodia, Vietnam, and Singapore. These experiments aside, the more traditional approaches focused on batteries are also going the same way. For example, China-based Eve Energy and Anwha [are planning]( to set up factories in in Malaysia and Thailand, respectively. Competition for the sector could come from anywhere: Tesla is [reportedly in talks]( with the Indian government to build cars in the country not just for domestic sales but also for export. -- Nikita  --------------------------------------------------------------- FYI 1️⃣ [The regulatory hurdles holding back Malaysia’s drone industry]( The country may have produced heavy hitters, but government-related issues remain. 2️⃣[The 8 key hires a SaaS startup needs as it scales]( Scaling is the goal of virtually every startup, but it does bring some unique hiring challenges that founders are often unprepared for. 3️⃣[How to shut down your startup when you’re out of runway]( Staying transparent, preparing a shutdown budget, and updating your resume are just some of the key tasks you face when shuttering your company.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [A nuclear deal]( Japan-based Kyoto Fusioneering has raised US$79 million in an oversubscribed round. The firm develops equipment that harnesses fusion energy. 2️⃣[Southeast Asia’s ‘largest telehealth series A round’]( Singapore-based Ora, which was founded by former Zalora chief marketing officer Elias Pour, has secured US$10 million. 3️⃣[Alibaba on cloud nine]( The Chinese tech titan is set to spin off its cloud unit to pursue an IPO within the next 12 months. 4️⃣[Gojek gets to ride Dat Bike]( Gojek and Dat Bike have announced a partnership to deploy electric motorbikes for transportation, logistics, and food deliveries in Vietnam. 5️⃣ [KKR backs Vietnamese education firm]( EQuest Education Group has secured US$120 million in debt from an undisclosed creditor and equity funding from existing investor KKR via its Global Impact Fund.  --------------------------------------------------------------- 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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