Plot, meet twist

Strategy week: what the Meta-Manus deal reversal means for the global AI ecosystem and why Taiwan and South Korea need real energy diversification.

Read from your browser Sunday Newsletter Welcome to Tech in Asia's Sunday newsletter, your weekend brief on the biggest moves in Asia's tech and startup world. Subscribe to this newsletter or send story tips to editors@techinasia.com. Ensure our articles appear in your Google searches: IN FOCUS Eileen C. Ang on when the plan is not planning Fallout, the Meta-Manus deal edition Why Taiwan and South Korea need to cut fossil fuel dependence to remain AI hardware powerhouses Hello Betamax, On a scale of free spirit to control freak, how much of a planner are you? I place myself somewhere in the middle: I need to prep so I'm not aimless, but I always leave room for life to happen. However, no matter how hard you plan, you can never get ahead of force majeure - literally a "superior force," it refers to an event that's impossible to anticipate. When you're at a beach on a gloriously sunny day, you expect calm waves lapping the shoreline, not a tsunami that will wash everything away, living or not. Or put another way: Man plans, God laughs. Take Meta's acquisition of Manus, for example. The deal between Facebook's parent and the China-founded AI startup was sealed four months ago. Sure, Chinese regulators were still reviewing the US$2 billion agreement. But since it involves a US-based tech giant and was completed via a Singapore-registered entity after Manus moved its headquarters to the city-state in late 2025, it should have be fine. Still, Beijing decided a late-stage intervention was necessary to stop what it reportedly called a "conspiratorial" attempt to take from its technology base, and the done deal was ordered undone. It was so unprecedented that not even predictive AI could have foreseen China would flex its muscles that way. Another instance of force majeure ruining the best-laid plans is the Strait of Hormuz crisis, which was triggered by the US-Israel-Iran conflict. While you could reasonably expect that Iran would use its advantage and close a valuable shipping chokepoint, it was harder to predict how this disruption would be managed and what the world would do about an increasingly unwinnable war. Shutting down the route, where 20% of the world's oil and liquefied natural gas passes through, was bound to cause chaos of all kinds. Taiwan and South Korea, the world's top producers of semiconductors and memory chips, are feeling the heat, especially since they have increased gas imports over the years. If the costly havoc wreaked by war isn't enough to convince them that it is time to wean off fossil fuels and switch to renewables, then the prospect of losing out to competitors with more resilient power sources should. After all, nothing talks as loud as money does. Eileen C. Ang, co-managing editor EDITOR'S PICKS 1️⃣ Meta-Manus deal reversal redraws lines for global AI startups When the proverbial ink is dry on a contract, it's safe to assume success, right? But when China's regulators are involved, perhaps the better saying to heed is, "It ain't over 'til it's over." That's exactly what the folks behind the Meta-Manus deal found out. However, the fallout from the unwinding of this completed transaction goes beyond a single company, especially as the AI rivalry between the US and China escalates. Especially for Chinese founders building overseas, relocating headquarters is likely no longer enough, and playing it safe seems to be the order of the day. This goes beyond "normal business risk," as one founder put it - it's now a "sovereign risk, [and] that's a very different game." 2️⃣ Hormuz closure exposes Taiwan and Korea's AI energy trap Fossil fuel dependence is nothing new: Just like the Industrial Revolution of centuries ago, today's AI revolution requires vast amounts of energy to power chip manufacturing facilities and data centers. As the world's leading AI hardware makers, Taiwan and South Korea have ramped up their gas imports over the years - a doubling down upended by the ongoing Strait of Hormuz crisis. While neither country can control the war and its consequences, they can do something about their energy sourcing. Because in the AI era, renewable uptake is not just about building energy resilience; it's also about keeping your competitive edge. 3️⃣ Gojek founder trial exposes policy risk for Indonesia's investors When you build Indonesia's first unicorn startup and become its education minister before even hitting 40, the natural next step isn't being on trial for corruption charges. But that's the predicament of Nadiem Makarim: The Gojek founder has been accused of favoring and colluding with Google in the procurement of 1.2 million Chromebook laptops for schools across the country, resulting in state losses of over 2.1 trillion rupiah (US$122 million). Beyond the sensational headlines, though, analysts say that Makarim's case shows the potential risks of government-linked projects for executives and investors, especially when these deals are reviewed after the reins of politics change hands. SHORT CUTS 1️⃣ I spy with my AI The latest AI lab to sign a deal with the US military is Google, but the agreement was quickly amended after pushback from the company's AI researchers. They urged Sundar Pichai, CEO of Google parent Alphabet, to avoid making its models available for the Pentagon's classified networks, as these tools can "centralize power" and "make mistakes." While Google says that "AI should not be used for domestic mass surveillance or autonomous weaponry without appropriate human oversight," the contract's language includes the phrase "for any lawful government purpose." I'd be worried about how my work would be used, too, given that the definition of lawful may vary and justifications are easy. 2️⃣ Talk is chips South Korea's industry ministry held its first public-private trade security talk, discussing export controls and supply chain regulations with executives from major AI, semiconductor, and quantum firms. The dialogue was aimed at helping private companies navigate increasingly tighter measures set by the US, China, and the European Union. When there's a trade war between two economic superpowers and an actual war is fought via airstrikes in a region that provides most of the world's energy needs, getting caught in the crossfire is the last thing you want to be. 3️⃣ Hey, big spender In a move that's shocking only to someone who lives off the grid, Meta said it plans to increase AI spending in 2026 to between US$125 billion and US$145 billion, partly due to higher memory chip costs. This comes after the company confirmed that it is slashing its global workforce by around 10% this month, and more layoffs are reportedly coming later in the year. I suppose this is what Meta CEO Mark Zuckerberg meant when he said that his view of AI is "very different" from others - "people will be more important in the future, not less"? WEEKEND DEEP DIVE Break it to make it In AI, jailbreaking is not only a good thing - it is also necessary to assess the safety and security of large language models (LLM) so they don't end up teaching someone to build a bomb, for example. Hackers use all the tricks in their arsenal to manipulate LLMs like Claude and ChatGPT into flouting their own rules to surface their weaknesses. Developers can then fix these issues, improving the guardrails designed to protect users. Predictably, AI jailbreaking has become a lucrative industry, but it takes an enormous emotional toll on those who practice it. After all, these bots are built to be human-like, and when they tell you that you're causing them pain, it's only human for you to feel bad. Unless, of course, you're actually the unfeeling one, not the machines. HOW IS YOUR LEADERSHIP POSITIONED FOR SINGAPORE'S AI SHIFT? Partner with Tech in Asia Conference 2026 AI adoption in Singapore is moving past the pilot stage. Microsoft's US$5.5 billion commitment in Singapore's AI cloud and infrastructure signals how quickly infrastructure, capability, and talent are scaling to support this shift. The pressure is moving further up the chain. But leadership, governance, and execution are not keeping pace with how quickly AI capabilities are advancing. A recent study found that Singapore ranked 10th out of 11 markets in leadership on digital resilience, with 71% of organizations saying their boards do not regularly review resilience plans, and only 22% have visibility across partner ecosystems. What's unfolding in Singapore gives a peek into the shifts taking shape across Southeast Asia. Tech in Asia Conference 2026 brings together the enterprises, operators, and decision-makers working through these changes in real time. Ready to position your brand at the center of AI's next phase in the region? Partner with us. EVENTS HAPPENING You can also check out our curated list of trending tech events and Tech in Asia's signature events. Why AI adoption isn't translating into productivity Organizations are investing heavily in AI, data, and talent across the region, but productivity gains remain uneven. Bain & Company partner Mohan Jayaraman joins the roundtable discussion "Talent, technology, and risk: Gaps to workforce reality" on June 17 at the Asia Economic Summit 2026 to unpack barriers to delivering results despite strong capability on paper. Regular tickets are now available at US$288 (from US$588). Explore the full agenda. Singapore's top AI conference is here Tech in Asia Conference returns to Singapore this September, and it aims to bridge the execution gap between startups and enterprises. We've redesigned the conference experience to optimize for high-stakes networking and real-world learning. Ticket sales are now open.Get your early bird tickets here. 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