December in Tech

Want to profit from tech ideas in 2025? Start by reflecting on the hottest tech topics of December. As always, here are three questions that are capturing everyone’s attention:

1. Cloud Gaming

PlayStation's handheld device will support dedicated game streaming, and cloud gaming enthusiasts are betting that Sony may soon consign traditional consoles to the history books. Meanwhile, public interest in computer gaming is skyrocketing, GPU prices are climbing, and income levels in gaming-heavy regions fluctuate unevenly, sometimes even declining. Over the next three years, cloud gaming is projected to achieve a CAGR of nearly 40%, a striking figure suggesting that the industry is ripe for technological innovation. Key opportunities include developing affordable, portable gaming devices that can accompany users throughout the day, as well as ideas for improving internet speeds on such devices.

2. Open-Source Robots

The world's first electric-powered humanoid robot, Tiangong, has been made open source to foster secondary development and accelerate robotics integration into daily life. Developed by a Beijing-based innovation center, it serves as a platform for advancing research in embodied robotics and body mechanics. This development opens new opportunities for integrating robots into custom life and business processes. Moreover, beyond humanitarian concerns, it also hints at the immense potential for infrastructure startups. Security frameworks for open-source robots, AI-powered text-to-code programming based on task recognition and automated implementation — these innovations represent a massive and enticing slice.

3. Risky Mental Health Startups

It is estimated that more than one in five U.S. adults lives with a mental illness. Moreover, life isn't getting any easier, and the number of people requiring psychiatric support is predictably rising. At the same time, psychiatry — one of the youngest medical sciences — continues to evolve and explore various mental health conditions, raising more questions than answers. This makes the abundance of mental health startups, apps, services, and websites built without medical expertise all the more concerning, though often well-intentioned. Investment in mental health technology startups, which grew 7x from 2019 to a peak of ~$2.9B in 2021, dropped significantly (-38% in 2022 and -64% in 2023 to ~$650M) but is showing signs of recovery in 2024, with over $380M invested year-to-date. Thus, this niche is once again becoming attractive for new products, but competing will be significantly easier with a medical component in the offering.