Asian Venture Capital Hits Decade Low

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Asian Venture Capital Hits Decade Low

Venture capital in Asia slumped in 2024, with deal activity hitting its lowest level in a decade. Just 27% of global deals occurred in Asia, a sharp drop from peak levels in 2021, as geopolitical tensions, high interest rates, and China’s economic struggles dampened risk appetites, according to Pitchbook’s Q4 2024 report.

China, traditionally driving half of Asia-Pacific’s deal activity, faced a “material decline” due to weak consumption, lingering effects of regulatory crackdowns, and U.S. sanctions on advanced technologies. Major firms like Sequoia Capital have split operations due to geopolitical pressures. Southeast Asia also struggled, with limited IPOs and exits, forcing startups to seek U.S. markets.

While global VC-backed deal value rose 5% to $368.5 billion, fundraising fell 20%, hitting its lowest level since 2016. However, Japan offered a bright spot with booming IPOs, driven by policies boosting shareholder value and deflation's end, signaling some resilience in the region.

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Trump Denies Tariff Policy Shift

President-elect Donald Trump dismissed a Washington Post report claiming his team is considering scaling back his universal tariff plan. The report suggested aides were exploring targeted tariffs on critical imports rather than the broad 10%-20% duties Trump promised, with China facing a 60% rate. On Truth Social, Trump labeled the report “fake news,” reaffirming his commitment to tariffs as a cornerstone of his economic policy.

“Tariffs created vast wealth for our country,” Trump wrote, emphasizing their role in paying off national debt and boosting economic growth. He continues to position tariffs as central to his “America First” agenda.

Despite Trump’s denial, markets interpreted the report as a signal of a potentially less aggressive tariff strategy. The U.S. Dollar Index fell 0.6%, while Treasury yields climbed.

Sources cited in the report noted that discussions have focused on targeted tariffs for sectors critical to national security, including steel, medical supplies, and energy materials. Economists warn tariffs could fuel inflation by raising costs for imported goods, but some argue they may boost domestic wages and employment.

While the economic impacts remain debated, Trump’s tariffs highlight broader tensions with China and their implications for trade, production, and U.S. competitiveness. For Trump, tariffs remain a key promise to “MAKE AMERICA WEALTHY AGAIN.”

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Nvidia Unveils Agentic AI Revolution

Nvidia CEO Jensen Huang unveiled groundbreaking advancements at CES 2025, including the next-gen RTX Blackwell GPUs and the “Cosmos” foundation model for autonomous systems. Huang declared the rise of "Agentic AI," describing it as a multi-trillion-dollar opportunity set to transform industries. Unlike generative AI, Agentic AI focuses on intelligent digital assistants capable of managing workflows and real-time problem-solving.

Key announcements included the RTX 5070 GPU, offering RTX 4090-level performance at $549, and Project Digits, a personal AI supercomputer powered by the Grace Blackwell Superchip. Project Digits aims to make AI supercomputing accessible to researchers and developers.

Huang also revealed a partnership with Toyota, integrating Nvidia’s AI into autonomous vehicle development, predicting the autonomous robotics sector will be the first multi-trillion-dollar robotics industry.

Highlighting Nvidia’s leadership in physical AI, Huang emphasized AI's role in health care, mobility, and automation, heralding the age of “AI Agentics” as the next major technological shift.

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