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Investors are making moves to inject their investments into the Generative AI (GenAI) space, with a keen focus on startup companies.

The emerging investment project, The GenAI Fund, hosted the ASEAN GenAI Startup Report Launch 2024 event at AWS’s Kuala Lumpur office this week. The roadshow is set to sail across the ASEAN countries—Singapore, Indonesia, Malaysia, the Philippines, Vietnam, and Thailand—aiming to highlight Southeast Asia’s potential in the GenAI sector while offering financial and strategic support services to these enterprises.

But where exactly did they come from, and how can they succeed from here on?

The GenAI Fund: Baby Steps to the Gold Mine

The GenAI Fund is a startup investment fund focused on advancing GenAI across Southeast Asia, with a particular interest in helping ASEAN Small and Medium-sized Enterprises (SMEs) elevate their AI products to the next level.

While the GenAI Fund’s vision is ambitious—elevating ASEAN SMEs to compete on a global scale—the journey is not without its challenges.

Lauren Nguyen and Denning Tan, two of the key figures behind The GenAI Fund, bring relevant experience and a shared understanding of the startup landscape in Southeast Asia. Nguyen, with her background in AI and startup development during her tenure at AWS, teamed up with Tan, who also previously worked at AWS, showcasing his extensive experience in guiding tech startups through early-stage growth.

Together, they recognised a gap in the market – an opportunity to provide not just capital, but also strategic support tailored to the unique needs of GenAI startups in the region.

“The GenAI Fund wasn’t just about filling a financial gap,” Nguyen commented. “It’s about addressing the specific hurdles that these companies face when trying to bring AI technologies to market.” Tan echoed this sentiment, adding that their goal is to help these businesses “navigate the early stage of development and position themselves for long-term success.”

Insights from Partners: Big Players’ Optimisms

During the event, the partners came together to share their thoughts on the future of GenAI in Southeast Asia, with a particular focus on Malaysia in this roadshow. A significant part of the discussion centred around the partnerships that The GenAI Fund has forged with key players like 500 Global and Databricks, aimed at bolstering the capabilities of GenAI startups in the region.

500 Global, a California-based venture capital firm, has been a significant financial backer of The GenAI Fund. Amanda Cham, Associate Director of Investments at 500 Global, attended the roadshow as a panellist and provided insights into the firm’s investment strategy.  “How do you innovate from the bottom? We’re thinking about the infrastructure level. Then we look at the application layer or tooling, like GitHub’s Copilot, which enables developers to create faster with less intensive capital expenditures. The key is increasing productivity while reducing costs—something we’re keenly interested in,” she explained.

Patrick Kelly from Databricks, another key partner of The GenAI Fund, brought a technical perspective to the discussion. He emphasised the critical role that data infrastructure plays in the success of AI initiatives. “AI is only as good as the data it processes. Our goal at Databricks is to ensure these startups have the right tools and frameworks to manage their data effectively and scale their solutions as they grow,” Kelly explained. He stressed the importance of data governance, with Cham sharing the same sentiment and labelling data as “the new gold for AI.”.

While these partnerships undoubtedly add value, the experts also acknowledged the inherent challenges. The collaboration with established entities like 500 Global and Databricks offers significant support, but the ultimate success will depend on how well these startups execute their strategies and adapt to the evolving AI landscape.

AWS and The GenAI Fund: Laying the Cards on the Table

Peter Murray, Country General Manager of AWS, discussed the partnership between AWS and The GenAI Fund. He expressed support for the initiative, noting that AWS’s infrastructure is designed to facilitate the growth of generative AI startups in Southeast Asia, including Malaysia.

“We’re seeing more opportunities to work together with digital-native businesses, startups, and the software ecosystem, which is huge in Malaysia,” Murray said, highlighting the growing opportunities for AWS to expand its collaborations with smaller enterprises that leverage GenAI products. With that being said, this partnership between AWS and The GenAI Fund is designed to empower startups by providing them with the cloud infrastructure and tools necessary to scale their AI-driven innovations.

However, Murray also emphasised that this is still a work in progress. “While we’re operational, the focus remains on testing and refining these solutions,” he noted. This cautious approach underscores the fact that, while the foundations are being laid, much work remains before these startups can fully realise their potential.

The Investor’s Faith: All Talk, But Can They Walk?

The GenAI Fund is certainly an organisation with good intentions, there’s no doubt. The investments they’ve laid on the table for these young enterprises gave them a foundation to nurture and realise their dreams. Hopefully, this is not going to be another case of “ambition clouded by overconfidence.”

The ultimate success of this initiative will depend on the ability of these businesses to mature and adapt to the demands of the global AI landscape. While there were promising products showcased during the roadshow—from healthcare AI agents to AI-generated creative / art materials—the stakes for these ambitions will rise. All eyes will be on the investors, who may face scrutiny if the returns do not meet expectations.

We all dream of a better future, with enriched lifestyles and marvellous innovations. With so much backing given to these enterprises, it’s time to raise the bar and turn dreams into reality. It’s time to walk the walk, not just talk the talk.

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