China has the munchies for some chiplets

This week’s On the Rise dives into China's quest for chiplets, explores Trirec's climate tech strategy, and delves into the threat of AI streamers. [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: - China’s drive [toward chiplets]( as trade war escalates - [Investment thesis and learnings]( of Singapore’s first climate tech investor - AI streamers on their way to spoil the TikTok Shop party Hello {NAME} , Before entering tech journalism, I tried my hands at political reporting. I wanted to do that on my own [Youtube channel]( and needed a high powered computer system for editing the videos. My friend and I decided to build it ourselves and started gathering components for it. We got everything but one component: the graphics processing unit (GPU) chip. The issue was that globally, people were hoarding GPUs to mine cryptocurrencies locally. Because of this, countries such as India were faced with shortages of these chips, resulting in sky-high prices. The situation normalized once the crypto market crashed, but a similar situation is now occurring due to the rise of generative AI. At the enterprise level, many companies are trying to get their hands on as many GPU chips as they can to meet the processing requirements of their generative AI models. Even heavily funded startups like OpenAI are feeling the GPU crunch. The situation has worsened for China - which is dependent on GPU imports - since the US banned Nvidia from exporting its enterprise-level H100 and A100 chips to some countries including China. In this week’s Big Story, I analyze whether chiplets can be a viable option to meet the processing power requirements of Chinese AI firms. Coming back to crypto mining, I recently [read a report]( stating that bitcoin mining alone is responsible for 65.4 megatonnes of carbon emissions per year - surpassing Greece’s total emissions in 2019. Fortunately, there are startups dedicated to mitigating climate impact, and more importantly, there are investors to back such ventures. In the second Big Story, my colleague Shadine speaks with Mike Lim, partner at Trirec, Singapore's earliest climate tech investor, on the lessons they have learned from investing in this space and their plans to raise up to US$450 million across two funds. Also, in this week’s AI Odyssey, I discuss how genAI streamers are posing a challenge to the growing live-commerce economy in Southeast Asia. -- Lokesh  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [Can chiplets power China’s genAI ambition?]( Chinese firms are turning to chiplets for their genAI GPUs after the US imposed restrictions on locally made chips. But is it a viable alternative? 2️⃣ [Singapore's first climate tech investor on moonshots, AI, and lessons learned]( Trirec is raising up to US$450 million across two funds, with one focusing on early-stage investments and the other on late-stage firms.  --------------------------------------------------------------- AI ODYSSEY Promising AI projects we’re noticing Can genAI streamers bust TikTok Shop’s creator economy boom? Remember [Barack Obama’s deepfake video]( that was posted five years ago? Well, we’ve come a long way since then - from deepfakes being created for revenge porn or political misinformation, to now a possibility of them affecting the income of livestreamers on apps like TikTok. TikTok Shop’s presence in Southeast Asia has recently led to a [live-commerce boom]( and livestreamers are making some serious cash. However, as time goes on, it's possible these sellers might face challenges from genAI-based deepfakes. To give an idea of how huge the creator economy has become in the region, there are “livestreaming factories” popping up in Indonesia. Content creators get the equipment and space they need to sell everything from beauty products to food and drinks on the app everyday. A creator working for five hours a day, seven days a week, can make around US$650 on a monthly basis in Indonesia, which is much higher than the average monthly salary of US$197 in the country. That said, this revenue might be affected in the near future as some Chinese firms have created a way to clone a human streamer for just US$1,000, according to a [MIT Technology Review]( report. This genAI bot streamer can then be put to work 24/7. Silicon Intelligence is one such company in China that offers a basic AI streamer for a one-time cost of US$1,000, while the more advanced bots go for a couple thousand dollars. With this tech, humans only need to enter the information about the product being sold and the AI streamer does the rest. The report also mentioned that more advanced AI streamers can even take care of answering live comments in real time. There are many companies in Southeast Asia that are hiring creators on a contract basis to help them sell their products on TikTok Shop 24/7. These firms could easily make the switch to AI streamers, resulting in reduced job opportunities for the human ones. In fact, China already is seeing a decline of 20% in earnings for these creators compared to last year. Popular Chinese ecommerce platforms like Taobao and JD.com are already using these AI streamers during the post-midnight hours - a period that makes it harder for platforms to justify their spending on human streamers. That said, there's one thing AI streamers are struggling with: forming a real, genuine connection with fans like actual human creators do. Fans usually buy from creators they trust and follow. On the flip side, original creators with massive followings can sell their digital clones to these live-shopping companies to use that trust quotient to sell their products. In the grand scheme of things, the real losers here are the mid-level creators, or folks who rely on daily earnings from these live-shopping platforms. -- Lokesh  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here](. 1️⃣ [Binance exits Russia]( The cryptocurrency exchange said it will sell its entire business operations in Russia to CommEX, a global digital asset solutions firm, amid concerns over compliance in the country. Binance said it won't be getting a cut of the ongoing revenue or have the option to buy back shares. 2️⃣ [SG biotech firm scores $16m round]( Automera, a Singapore-based biotechnology company, has raised US$16 million in series A financing. The funding boost was led by Accelerator Life Science Partners and ClavystBio, a Temasek-backed venture builder striving to enhance global health solutions. 3️⃣ [Tesla mafia bags $3m pre-series A money]( Raptee, an Indian EV startup founded by former Tesla executive Dinesh Arjun, aims to integrate high-voltage drivetrain tech into its two-wheelers, adding an on-board charger for compatibility with the current CCS2 public charging network. 4️⃣ [Layoffs even in the garden of Eden]( Indonesian agritech firm EdenFarm laid off 300 people and is shifting away from B2B fresh produce distribution outside Greater Jakarta. It is pivoting toward manufacturing and selling TuangTuang, its newly launched brand of packaged seasonings. 5️⃣ [True Light illuminates with $3.3b]( True Light Capital, a wholly owned subsidiary of Temasek, has raised US$3.3 billion for its inaugural flagship fund. It was launched to help spread its wings and give its partners a shot at riding the investment waves in Greater China.  --------------------------------------------------------------- FYI 1️⃣ [GetGo profitable for second straight year, revenue surges by over 300%]( The Singapore-based car rental platform recorded a 300% revenue spike to US$34.1 million in FY 2022. Net profits rose to US$94,900 despite higher expenses. 2️⃣ [Malaysia’s startup ecosystem is behind its potential]( This community article analyzes Malaysia's promising startup ecosystem, uncovering its potential and identifying the gaps that are hindering its growth compared to neighboring Southeast Asian markets.  --------------------------------------------------------------- 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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