Here’s what a 3.5x uptick in AI spending looks like

This week’s On the Rise looks at the growth of AI firms in SEA, Nansen’s financials in 2022, and the Sam Bankman-Fried trial update. [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: - How the number of AI firms is [growing quickly]( across Southeast Asia - Why crypto analytics firm Nansen was [in the red]( in 2022 - What’s going on at the trial of Sam Bankman-Fried Hello {NAME} , In 2000, I faced a major decision: to continue my career in journalism or go to law school. I opted for law school, graduated three years later, and then ran right back to a newsroom. People have asked me over the years if I've regretted my choice. My answer: only on paydays. I love being a journalist, and over the past year, my knowledge of the law has been extremely helpful as I’ve written about the trials of various crypto bros That includes the case of [Sam Bankman-Fried]( the founder of FTX. His trial, which surrounds the implosion of the crypto exchange last November, starts this week, and we're already neck-deep into witness testimony. But before we get into that drama, we have this week's Big Stories, both from my colleague Deepti Sri. In our first Big Story we take a look at Southeast Asia's artificial intelligence startup landscape. It's no secret AI has boomed since the launch of ChatGPT. The number of businesses adopting AI in Asia Pacific jumped 76% in 2022. In the second Big Story, we have a look at [Nansen]( often called the Bloomberg of crypto analytics. Its data has been used as the basis for stories from [Tech in Asia]( to the [New York Times](. CEO [Alex Svanevik]( talks to us about why the company ended up in the red in 2022 despite revenue jumping by almost 500%. Finally, in Token Issue, we'll go back to the FTX founder’s trial and take a look at what we can expect over the next month. -- Scott  --------------------------------------------------------------- THE BIG STORIES 1️⃣ [Mapping AI startups pushing SEA into the spotlight]( In 2022, a record-breaking 32 AI startups secured funding in Southeast Asia, a large portion of which followed the release of ChatGPT. Now, the region is on track for a 3.5x uptick in AI spending. 2️⃣ [Nansen’s 2022 revenue rises by 5x, swings to $15.9m loss]( Nansen’s revenue surged in 2022. This came as the blockchain analysis firm gained more subscribers by expanding its services to include crypto businesses. Despite the revenue growth, Nansen swung to a loss for the year, which it attributed to higher employee expenses.  --------------------------------------------------------------- TOKEN ISSUE How to convince a jury your client isn’t the genius he’s long claimed to be? It isn’t always easy to feel sympathy for lawyers, but I’m starting to feel a bit for Mark Cohen, the defense lawyer for Sam Bankman-Fried. SBF, as the FTX founder is known, is on trial this week in New York on seven charges related to securities fraud, wire fraud, and conspiracy to launder money. Those charges include the US$8 billion that SBF claimed he, uh, [“misaccounted.”]( If that sounds dumb, it’s meant to. Cohen has decided to go with the “SBF’s too stupid to be guilty” defense. To be fair, the lawyer doesn't call it that. He calls it “acting in good faith.” It all comes down to intent. "Sam didn’t intend to defraud anyone," Cohen [told the jurors](. "There was no theft." But that strategy may be difficult given the facts. SBF is a graduate of the Massachusetts Institute of Technology (MIT) and a former Wall Street trader whose personal wealth peaked at over US$26 billion before FTX collapsed. It takes some cojones for Cohen to try to make SBF look like an inexperienced kid who just got in over his head. But this argument isn’t as outlandish as it sounds. The same day the trial began was also the release date for Going Infinite, the latest book by Michael Lewis, which profiles SBF from over 100 interviews that Lewis conducted. In [publicity interviews]( for the book, the author seems to defend SBF as a kid who just wanted to do good. To be fair, Lewis is known for focusing on odd-ball characters to break down complex financial topics. He made Michael Burry and Jared Vennett, two people that are [not universally loved]( in real life, the heroes of his last book, “The Big Short.” But Lewis is getting panned for Going Infinite. It seems no one wants to hear about the sympathetic tales of a rich kid who accidentally lost billions of dollars of people’s money. The prosecution is certainly aware of this. In the first two days of the trial, they produced two witnesses, a London-based broker named Marc-Antoine Julliard and Paradigm co-founder Matt Huang. Juilliard claims he lost US$100,000 in FTX, while Paradigm invested more than US$200 million in the failed crypto exchange. The prosecutors appear to be driving home the losses caused by the collapse of FTX. Cohen’s job isn’t going to get any easier either. In the coming week, he’ll have to defend his client against testimony from Caroline Ellison, SBF’s ex-girlfriend and the CEO of Alameda Research. She has already pleaded guilty to fraud in charges related to the FTX collapse. And this is just the start, folks. Strap in. The trial isn’t expected to wrap up until late November. -- Scott  --------------------------------------------------------------- FYI 1️⃣ [Indonesian startups work to clear the air as pollution grips capital city]( Indonesian startups are working to monitor air pollution in Jakarta, a city that has seen 8,100 deaths this year alone. 2️⃣ [Harassment, bankruptcy, debts, and lawsuits: Where does Moovaz go from here?]( Vishnu Vasudeven, the relocation firm’s founder, has been involved in multiple court cases and ordered to pay at least S$84,681 to staff and vendors. 3️⃣ [Selex Motors bets on battery swapping to lead Vietnam’s EV revolution]( Selex Motors builds electric bikes and batteries as well as operates a network of homegrown battery-swapping stations.  --------------------------------------------------------------- NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the emerging tech scene [here]( 1️⃣ [Grab-backed Good Doctor secures US$10 million to double down on Indonesia]( Good Doctor has raised US$10 million in a series A funding round led by MDI Ventures, with participation from existing investor Grab. 2️⃣ [Zoomcar expects SPAC deal to close in Q4 this year]( India-based Zoomcar, a car-sharing startup, is one step closer to merging with blank-check company Innovative International Acquisition Corp. (IOAC). The firm is waiting on approval from IOAC and its stockholders. 3️⃣ [Kita raises US$3 million to address supply chain issues]( Kita Agriculture raised US$3 million in a seed round co-led by Gentree Fund and Altara Ventures. The agritech firm is aiming to address the fragmented supply chain in the Philippines by sourcing fruits and vegetables and making direct sales to B2B clients in the local hospitality industry. 4️⃣ [Web3 fund raises first US$100 million]( Hong Kong-based VC firm CMCC Global has raised US$100 million in the first close of its new venture fund, which will focus on startups in the blockchain space. The Titan Fund will target early-stage startups in three areas: infrastructure, fintech, and consumer applications such as gaming, metaverse, and NFTs. 5️⃣ [Peak XV joins US$7.5 million round of AI startup Aampe]( Aampe has raised US$7.5 million in a round that includes Peak XV Partners (formerly Sequoia Capital India & Southeast Asia). Aampe is a Singapore- and US-based AI startup focused on helping marketers increase customer engagement through personalized messaging.  --------------------------------------------------------------- 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. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. 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