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IN FOCUS

• ByteDance tests whether Seedance can pull customers deeper into its enterprise offerings
• A look back into the pressures that could force an AI-video shakeout this year
• Singapore's Volta Infra raises US$300 million for AI infrastructure

Hello reader,

There's a coffee shop in my city that became known for its croissants. The pastry proved so popular that its owners opened a dedicated bakery next door. They've also recently gone a step further by opening a new burger joint.

The logic is easy to follow: When one product becomes a hit, use it to pull customers into another business.

ByteDance has a similar strategy for Seedance, the firm's AI video generation model. Seedance has become a major revenue driver, and the company hopes that demand will open doors for BytePlus, its international cloud platform.

However, enterprise customers can use an AI model and not move their servers, databases, and security systems to the same provider. ByteDance could get lots of customers to use Seedance, but there's no guarantee of a wider customer relationship.

In today's top story, I examine whether Seedance can become a lasting foothold for BytePlus. While the firm's rival Alibaba entered the AI boom with established cloud customers to sell new products to, ByteDance appears to be building its cloud business in reverse. It's using a hit AI product to create those relationships.

Seedance has enterprise demand. The bigger question is whether that demand can pull customers deeper into BytePlus.

Glenn Kaonang, journalist

TOP STORY

ByteDance has a billion-yuan wedge, but is it a cloud strategy?

Vietnamese enterprise AI platform Diaflow's experience with BytePlus illustrates ByteDance's problem. Seedance and other ByteDance models handle most of Diaflow's video and image-generation workloads, but the company has kept its databases, computing infrastructure, and core applications on Amazon Web Services.

The same divide appears at market level in China, where ByteDance dominates the requests sent to AI models, but Alibaba still owns much more of the infrastructure surrounding them.

FROM OUR ARCHIVES

AI video surged in 2025. Is a 2026 shakeout ahead?

Seedance isn't the only Chinese video model attracting serious money. Last month, Kuaishou's Kling AI raised US$2.8 billion from investors including Alibaba, Tencent, and Baidu.

The deal reinforces a divide examined in this story from January: capital-intensive foundation models are increasingly concentrated among deep-pocketed companies, while smaller startups may have better odds building specialized applications on top of them.

SPOTLIGHT

How mature is Southeast Asia's AI startup ecosystem?

Market intelligence platform Tracxn just released a report highlighting Southeast Asia's AI startup landscape. It presents rising funding and recent acquisitions as evidence that the region's AI ecosystem is maturing.

The report identifies a useful distinction: The largest investments are found in infrastructure, while application companies focusing on areas like computer vision, retail analytics, and enterprise software are the ones finding buyers.

But the evidence doesn't support a broad conclusion about the region's maturity. Two companies do much of the work: Kling AI's US$2.8 billion raise accounts for 68% of the region's funding so far into the year, while MiniMax is the only example of a recent IPO. Making matters worse is the fact that both are China-based companies that Tracxn classifies as Singaporean.

Without Kling, the region's total funding for 2026 falls from US$4.1 billion to about US$1.3 billion. Without MiniMax, the report's evidence of an AI startup reaching the public markets completely disappears.

My take: Singapore is Southeast Asia's dominant fundraising and corporate hub for AI. But the report conflates companies using Singapore as a base with companies produced by its startup ecosystem, overstating the country's late-stage pipeline.

TRENDING NEWS

1️⃣ A16z co-leads $300m round for SG AI firm Volta Infra

The Singapore-based AI infrastructure firm was valued at US$2.4 billion in the round. Volta secured another US$5 billion in financing for customers seeking AI chips and computing capacity.

2️⃣ Unitree eyes over $7.4b valuation in Shanghai IPO

The Chinese robot maker plans to raise US$622 million, with its expected valuation trumping listed peer UBTech's market cap at about US$5.6 billion.

3️⃣ Polymarket seeks funding at over $20b valuation

The target is up from the US$15 billion valuation Polymarket secured in April. The prediction market platform said in June that its annualized revenue had surpassed US$1 billion.

4️⃣ Razer teams up with NUS on AI gaming research

The Razer-NUS Joint AI Research Lab will focus on AI models for interactive gaming environments. NUS Computing will lead research and talent development, while Razer will test industry applications and integrate the work into products.

5️⃣ CoreWeave to enter Indonesia with 3 data centers

The US-based AI cloud computing firm said these are its first facilities in the Asia Pacific. CoreWeave will own and operate all three facilities, which are expected to have 360 megawatts in total capacity.

RETHINKING IP IN AN AI ERA

In partnership with

Did you think having a great product would guarantee success? AI's changed the game, and founders have to face a new reality: with the tech lowering the barriers to idea creation, sustaining a competitive advantage is harder than ever. Survival now hinges on how well you protect your intangible assets.

According to Tan Kong Hwee, CEO of the Intellectual Property Office of Singapore, companies must urgently rethink their intellectual property (IP) strategies. He highlights three underutilized approaches: leveraging IP to signal long-term potential to investors, using it as a shield when scaling internationally against rapid AI-enabled copycats, and treating intangible assets - like proprietary algorithms and data - as a true competitive moat.

To explore how AI is rewriting the rules of innovation and protection, join global tech leaders at Singapore IP Week 2026 this August 26 to 27. Register with the code SIPWMEDIA to enjoy a special rate here.

PRESS PEEKS

The following press releases were published as they were received, without any editing from the Tech in Asia team. You, too, can publish your own press release on our site by simply filling out this form. Our team will get back to you by the next business day.

• AutomationSG - Nodeflux Announces Global Expansion Initiative, Unveiling ATHENA Enterprise AI in 2025 and SAR Satellite Analytics in 2026: AI pioneer Nodeflux expands globally, launching ATHENA Sovereign AI in 2025 and a SAR Satellite Image Analysis platform in 2026.
• ADA - ADA acquires Algonomy, strengthening its intelligent growth platform for a fully agentic experience: ADA acquires Algonomy, expanding its AI capabilities to deliver intelligent, agentic customer experiences at scale.
• Nodeflux - AutomationSG launches TIA-Ready Framework for trusted industrial artificial intelligence: An industry-led readiness and recognition pathway to support responsible adoption of AI in automation and robotics.

EVENTS HAPPENING

In conversation with Google DeepMind's JJ Geewax JJ Geewax, director of applied AI at Google DeepMind, understands that even the most advanced models are only as good as the infrastructure they run on. Having spent 15 years designing massive-scale systems at WhatsApp, Meta, and Google, JJ brings a deep practitioner's perspective to the brutal challenges of real-world deployment. Secure your access here.

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