Bets

• Tech Innovators has secured $50 million in funding from Venture Capitalist Alpha to drive advancements in artificial intelligence. • This investment occurs amidst a broader trend in Southeast Asia where EV startups have collectively raised US$622 million. • The shift in funding indicates that investors are moving beyond initial pitches to support pilot programs and tangible implementation.

• Foreign Portfolio Investors (FPIs) have returned to Indian equities after months of heavy selling, though their approach remains selective rather than a broad bet on national growth. • India's weight in the MSCI Emerging Markets Index has dropped to approximately 14%, down from a late-2024 peak of 21% due to capital rotating toward AI-driven markets like Taiwan and South Korea. • This shift indicates that investors are hunting for specific value where valuations and earnings visibility have improved, rather than initiating a wide-scale re-rating of the Indian economy.

• Global AI funding is surging, highlighted by semiconductor startup Etched raising $700 million to develop specialized AI inference chips, bringing its valuation to $21 billion. • The Etched funding round saw major participation from top-tier investors including Jane Street, Kleiner Perkins, Sequoia, Andreessen Horowitz, and Tiger Global. • In India, startups raised a total of $233.2 million, with investment activity primarily concentrated in the fintech sector and companies preparing for IPOs.

• The UK government is providing funding to promising AI chip startups to establish a stronger domestic foothold in the semiconductor industry. • This strategic investment aims to reduce reliance on foreign technology and foster a homegrown ecosystem of hardware innovation. • The move is critical as global competition intensifies between the US and China for dominance in AI infrastructure and high-performance computing.

• South Korea's Ministry of Trade, Industry and Resources has announced a strategic plan to develop seven "SEEDs" (Strategic Emerging Engines for Disruptive Innovation) to drive future economic growth. • The targeted industries include quantum technology, space and aviation, nuclear fusion, small modular reactors, advanced biotechnology, breakthrough renewable energy, and advanced supply chains. • This initiative comes as the OECD warns that South Korea's potential growth could drop to a record low of 1.52% next year, suggesting that the current semiconductor export boom is insufficient for long-term stability.

• Asian stock markets generally rose, led by a significant 3.7% rally in South Korea’s Kospi Index, while Japan’s Topix and the Shanghai Composite both climbed 0.5%. • The positive momentum follows a cooler-than-expected US jobs report and CPI reading, which Wells Fargo suggests may discourage the Federal Reserve from taking hawkish rate hikes in September. • Despite the broad rise, caution remains as Cisco Systems' shares dropped 4.1% due to disappointing earnings, and Cerebras Systems plummeted 17% following a decline in hardware sales.

• Global equities rose on Thursday, with Asia-Pacific shares outside Japan climbing 0.96% and emerging market stocks increasing 0.85% to 1,696.17. • The rally was driven by investors reducing their bets on further U.S. interest rate hikes, though the pan-European STOXX 600 remained muted, closing at 659.24 points. • Oil prices declined due to higher inventories, which subsequently weighed down energy and mining shares across European markets.

• Tech investors are increasingly using the AI investment priorities of Chief Marketing Officers (CMOs) as a leading indicator for market momentum heading into the second half of 2026. • The traditional annual business planning cycle is becoming obsolete because competitive advantages can now vanish in a single quarter due to rapid AI advancements. • This shift highlights a new reality where a single technological breakthrough can reshape entire industries overnight, forcing companies to adopt more agile strategies.