#8 | AI NEWS FROM ASIA | HK to establish AI R&D Institute, Tencent unveils new model to rival DeepSeek's R1 model

#8 | AI NEWS FROM ASIA | HK to establish AI R&D Institute, Tencent unveils new model to rival DeepSeek's R1 model

As the pace of AI innovation accelerates, we’re here to bring you the most significant developments shaping the future of technology across Asia. From groundbreaking advancements to transformative trends, join us as we explore the most compelling stories driving AI progress in the region.

  1. In the 2025-26 Budget, Hong Kong's Financial Secretary Paul Chan announced the allocation of HK$1 billion to establish the Hong Kong AI Research and Development Institute. It is part of the government’s push to develop AI as a “core industry” and to use it to help traditional sectors upgrade and transform.
  2. Tencent has unveiled its latest AI model, Hunyuan Turbo S, designed to deliver rapid responses within a second, surpassing the speed of DeepSeek's R1 model. This advancement positions Tencent competitively in the AI landscape, offering faster and cost-effective solutions.
  3. DeepSeek has introduced an off-peak pricing model, offering developers discounts of up to 75% during periods of lower demand. The strategy aims to optimize infrastructure use and make advanced AI capabilities more accessible to cost-conscious users and startups.
  4. Chinese AI startup Zhipu AI has raised over 1 billion yuan in a recent funding round, with participation from state-backed investors such as Hangzhou City Investment Group Industrial Fund and Shangcheng Capital. The company plans to use the funds to enhance its General Language Model and expand its AI ecosystem.
  5. Novautek Autonomous Driving Limited, a Hong Kong-based technology company specializing in artificial intelligence and autonomous driving, has established a new AI Technology Application and R&D Center in Hong Kong Science Park.
  6. Chinese smartphone manufacturer Honor has announced plans to invest $10 billion over the next five years to develop AI capabilities across its product range. This initiative aims to expand beyond smartphones into AI-powered PCs, tablets, and wearables. Honor, formerly a unit of Huawei, is also preparing for a public listing following a recent shareholder restructuring.
  7. Asia is actively embracing AI in the arts, integrating technology to preserve and innovate cultural expressions. A Hong Kong university research team is utilizing VR and AI to promote Chinese martial arts and traditional dances, creating immersive experiences that make these art forms accessible globally. Additionally, Hong Kong's film industry is adopting AI to enhance efficiency and reduce production costs.
  8. Japan's aging population and declining birth rates have led to a severe shortage of aged-care workers, with only one applicant for every 4.25 jobs in December 2024. To address this, researchers in Tokyo are developing AI-driven humanoid robots like AIREC. However, challenges remain in ensuring safety and precision in human-robot interactions.


We hope you found this edition interesting and insightful—look out for our weekly updates with more AI news, research and analysis.

Let's continue to connect, collaborate, and drive AI innovation together!


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