AI competition heats up as US targets Southeast Asia’s public sector

Washington’s launch of AI Spark is seen as a move to counter Chinese AI models that have made inroads in Southeast Asia, analysts say

However, the initiative is unlikely to force Southeast Asia to choose between AI Spark and the Chinese model, as the region is expected to integrate US know-how with Chinese and local systems to avoid dependence on any single provider, according to analysts.

On July 22, Washington said in a statement that AI Spark would support American AI exports to Southeast Asia as part of an overarching plan to advance “technologies of the future”.

The announcement came in the middle of US Secretary of State Marco Rubio’s visit to Manila during a meeting of Asean foreign ministers last week, where he said Washington was delivering US$2.5 billion in strategic investments in the region.

At a virtual press briefing on Friday, US Ambassador Kevin Kim said that while the investments would span various categories, there was an emphasis on advancing technologies in Southeast Asia given its interest in AI, data centres and other areas.

“AI Spark … will provide financial and technical support to Southeast Asian governments interested in deploying the US’ AI stack for public sector applications,” Kim added.