The global investment landscape for artificial intelligence (AI) and deep technology is evolving in exciting and diverse ways, with the East and West each charting distinct paths. These differences are shaped by unique geopolitical contexts, investment philosophies, and technological priorities, opening up a wider range of opportunities for innovation and growth.
From a Western standpoint, there is a strong emphasis on market-driven investment models, focusing on commercial scalability and achieving early product-market fit.
Ben Prade, Partner at GP Bullhound — a global technology advisory and investment firm with 13 offices worldwide — observes robust private sector-led growth in AI infrastructure, particularly across Europe and North America.
However, caution has emerged around market dynamics, notably concerns about over-investment in U.S. data centres and the commoditisation of large language models (LLMs). Prade warns that as foundational layers of AI become more accessible, investment returns could be squeezed.
Asia’s Shift: From Experimentation to Execution
Meanwhile, Kenny Ho, Partner at Alibaba Entrepreneurs Fund (AEF)–NextGen Fund, explains that AI, quantum computing, and strategic infrastructure development are immediate priorities across Greater China and Southeast Asia. Drawing from his leadership experience at Alibaba, Ho emphasises that Asia is no longer in the experimental phase; it is actively deploying quantum and hardware innovations to strengthen critical sectors such as e-commerce logistics. The “DeepSeek moment” — highlighting the significance of China’s open-source AI ecosystem, where a few major players do not dominate large language models (LLMs) as they are in the U.S, emphasised the different approach in the east that foster openness for broader participation in improving LLMs and building applications, driving AI ecosystem growth.
Opportunities and Risks Ahead
Prade and Ho noted that the AI and deep tech investment landscape offers exciting opportunities and cautionary notes. Promising areas for investments may include:
- Quantum sensing and quantum computing
- Strategic hardware development for critical infrastructure
- Deep tech applications in logistics and geospatial intelligence
And areas requiring caution:
- Oversupply of U.S. data centres without secured offtake agreements
- Increasing commoditisation of AI models, leading to lower defensibility
- Valuation-driven investments lacking strategic coherence
Investing Beyond Trends: Lessons from Leo Labs and Gaode Map
Both Prade and Ho stressed the importance of strategic clarity and long-term vision. They caution against trend-chasing investment strategies that may undermine sustainable growth. Prade pointed to GP Bullhound’s long-term investment strategy, highlighting their early success with Leo Labs—a space traffic monitoring company—as a case study in the power of patient capital to drive deep tech commercialisation.
Similarly, Ho shared a success story from Alibaba: its acquisition of Gaode Map (AMAP) over a decade ago. At the time, digital maps were primarily used for basic navigation, with services like food delivery and ride-hailing still in their infancy. However, Alibaba recognised the future strategic value of digital maps for e-commerce. Today, Gaode Map is deeply embedded across Alibaba’s ecosystem, powering key services such as food delivery, e-commerce, and ride-hailing, and serving as a core pillar of its digital infrastructure in China.
Collaboration as a Cornerstone
Partnerships and open-minded collaboration remain critical to success. As Ho reflects on Alibaba’s investment experiences:
“You cannot do everything internally. Partnerships matter. Open-mindedness can unlock significant complementary value.”
With the uncertainties ahead, early-stage founders and investors must stay grounded, streamline execution, and focus on solving real-world problems. As the East and West evolve along distinct paths, those who maintain strategic clarity and embrace cross-border collaboration will be best positioned to drive the next wave of deep tech innovation.
Southeast Asia is becoming a vital bridge between the two regions in this shifting landscape. Its neutral political positioning, rapidly maturing tech ecosystems, and the return of global talent are creating a fertile environment for collaborative capital and sustainable growth.
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