Rounding up 2025's top tech news

Tech Latest from Nik Asia: 2025 Year in Review & 2026 Outlook

Key Concepts:

• Deepseek: A Chinese AI startup challenging Nvidia’s dominance through efficient AI model training and deployment.
• AI & Jobs: The impact of generative AI on the job market, particularly in white-collar professions and the emergence of new roles like data annotation.
• Robotics & AI Integration: The rapid advancement of robotics, particularly humanoid robots, and its synergy with AI development.
• Data Centers & Energy Demand: The escalating energy requirements of data centers driven by the AI boom and the search for sustainable energy solutions.
• Chip Self-Sufficiency (China): China’s efforts to build a domestic semiconductor supply chain, including advanced lithography technology.
• Southeast Asian Tech Scene: The evolution of the startup ecosystem in Southeast Asia, particularly in Indonesia, and the challenges faced by previously high-flying companies.
• EV Market (Asia): The growing competition in the Asian electric vehicle market, with a focus on VinFast and its expansion across Southeast Asia.
• Memory Shortage: The current shortage of memory chips due to high demand from AI companies and its impact on industries like gaming.

I. Deepseek & the AI Chip Landscape

The discussion began with a retrospective on Deepseek, a Chinese AI startup that initially caused a significant market shock in early 2025. Announcing the ability to train and deploy AI models at a fraction of the cost (96% less than OpenAI) of established players, Deepseek briefly caused Nvidia’s market capitalization to plummet by $100 billion – the largest single-day loss in US market history. While Deepseek didn’t ultimately “kill” Nvidia, it spurred competition within China, prompting companies like Alibaba and Baidu to accelerate their own AI model development.

Currently, Deepseek is still operational, though quieter, as larger players dominate the Chinese AI landscape. The primary challenge to Nvidia now comes not from Deepseek directly, but from the rise of Chinese AI chip designers like MoreThreads and Meta X, attracting investor interest. The key takeaway is that increased efficiency in AI doesn’t necessarily reduce demand; it often increases it, sustaining the need for powerful chips like Nvidia’s GPUs.

II. AI & the Future of Work

A significant portion of the conversation focused on the impact of generative AI on employment. The initial fear of widespread job displacement, particularly for white-collar workers, is being nuanced by emerging trends.

• South Korea’s Legal Profession: AI-powered apps are assisting lawyers with client matching and research, embraced by younger lawyers as a competitive advantage while raising concerns among established professionals.
• India’s Outsourcing Market: Contrary to expectations of a “bloodbath,” AI is creating new opportunities in India, particularly in data annotation. This segment is projected to grow 14-fold in the next 10 years, reaching a $7 billion market.
• Job Creation vs. Displacement: While some job losses are occurring, the net effect is unclear. Companies are hesitant to publicly attribute cuts solely to AI, and other economic factors are at play. The historical pattern of technological advancements creating new jobs alongside displacing old ones appears to be holding true.

A common Indian meme, referencing the country’s role in AI development, was also mentioned, highlighting the growing importance of India in the global AI ecosystem.

III. Robotics & the Convergence with AI

The discussion highlighted the rapid advancements in robotics, particularly industrial and humanoid robots. Examples included:

• Japan’s Robotics Adoption: Robots are becoming commonplace in Japanese restaurants, showcasing their increasing sophistication and integration into daily life.
• Pudoo Robotics (China): The four-legged, wheeled robot developed by Pudoo demonstrates significant progress in robotic mobility and natural movement.
• Market Growth: Goldman Sachs and Bank of America estimate humanoid robot shipments will increase from 3,000 units in 2024 to 18,000-20,000 units in 2025.

The convergence of robotics and AI is seen as a major growth area, with AI companies and chip manufacturers increasingly focusing on “physical AI” applications. Concerns about potential military applications of robotics were briefly acknowledged, with drones being identified as a more immediate concern.

IV. Energy Demands of Data Centers & Sustainable Solutions

The exponential growth of data centers, fueled by the AI boom, is creating a significant strain on energy resources. The conversation explored potential solutions:

• Perovskite Solar Cells (Japan): These ultra-thin, flexible solar cells offer a potential solution for expanding solar energy generation in space-constrained environments like Japan. Efficiency is rapidly improving, making them a viable supplement to traditional solar panels.
• Nuclear Fusion: While still in the early stages of development, nuclear fusion is gaining momentum, with companies like Helof Fusion (Japan) securing their first power purchase agreement. Investments in nuclear fusion are increasing globally, with the US and Japan leading the charge, aiming for viable energy production by the 2030s.

V. China’s Chip Self-Sufficiency & US Export Controls

The lifting and re-imposition of US export controls on Nvidia’s H200 chips to China was discussed. Despite the temporary access to advanced chips, China is actively pursuing domestic semiconductor production, including efforts to replicate ASML’s extreme ultraviolet (EUV) lithography technology – a highly complex machine crucial for advanced chip manufacturing. While Nvidia’s market share in China may not return to its previous 95% dominance, the situation underscores the importance of domestic chip production for China’s technological independence.

VI. Southeast Asian Tech & VinFast’s EV Ambitions

The evolving tech landscape in Southeast Asia, particularly in Indonesia, was examined. The initial boom of unicorns like GoTo and Bukalapak has given way to consolidation and challenges, with potential mergers and a focus on profitability. VinFast, a Vietnamese EV manufacturer, is highlighted as a key player to watch, expanding aggressively across Southeast Asia and challenging established Chinese EV makers.

VII. The Memory Chip Shortage & Gaming Impact

A current memory chip shortage, driven by AI demand, is impacting various industries, including gaming. The rising prices of memory chips are affecting the availability and affordability of gaming PCs and consoles, exemplified by a recent 20% drop in Nintendo’s share price following the announcement of the Switch 2.

Conclusion:

The discussion painted a picture of a rapidly evolving tech landscape, characterized by intense competition, technological breakthroughs, and shifting geopolitical dynamics. While challenges remain – including energy demands, supply chain disruptions, and the impact on employment – the overall outlook is optimistic, with significant opportunities for innovation and growth in areas like AI, robotics, sustainable energy, and the Asian tech sector. The key takeaway is the need for continued monitoring of these trends and adaptation to the changing technological landscape.