Key takeaways
- In tech investment, VC funding is rotating out of pure software and into “physical AI” such as robotics and automation, as capital chases where AI meets the real world.
- For tech founders raising capital, scalability is now the price of entry. Investors are increasingly selective, prioritizing predictable revenue and sound unit economics.
- In energy markets, the conflict in the Middle East triggered one of the largest oil supply shocks on record, with companies now expecting higher-for-longer energy prices.
Tech, AI and the new funding landscape in Asia Pacific
With global AI-related capital expenditure (capex) projected to approach $870 billion by the end of 2026, Asia Pacific (APAC) sits at the center of an unprecedented investment wave. That 77% year-over-year climb in AI capex, on top of around $5.5 trillion in data center spending1 over the five years to 2030, means the region's semiconductor makers, cloud infrastructure and startups are among the biggest beneficiaries.
For the founders building through it, that opportunity is still complex.
“We're at the precipice of a platform transition that creates an unbridled opportunity in AI. At the same time, there are crosswinds — whether geopolitical, macroeconomic or supply chain-related. Founders need to build for both growth and resilience,” said Mark Fiteny, head of TMT and New Economy Investment Banking, Asia Pacific, at J.P. Morgan.
Venture capital investment has started to shift its focus with this transition. While significant value remains to be captured at the application layer, funding is increasingly flowing toward projects where AI meets the physical world — such as robotics, automation, edge computing and quantum computing.
“Investors are looking to see how companies are going to use AI to drive innovation — and whether it translates into a scalable, resilient business model.”
Amy Tan
Head of Tech and Innovation, Global Corporate Banking, Asia Pacific, J.P. Morgan.
The implications for founders navigating this environment are significant. Supply chains are more complex, capital deployment cycles are longer and the fundraising process needs to reflect this new reality.
“Investors are looking to see how companies are going to use AI to drive innovation — and whether it translates into a scalable, resilient business model,” said Amy Tan, head of Tech and Innovation, Global Corporate Banking, Asia Pacific, at J.P. Morgan.
On exits, the message from investors is clear: optionality is everything. Whether dual-tracking a private capital raise alongside an IPO or exploring a trade sale, companies that prepare ahead of the window — rather than waiting for it — are best placed to move when conditions allow.
How the oil supply shock is hitting APAC companies
While tech sector investment is looking ahead, energy markets are grappling with a more immediate challenge. Crude oil markets are facing one of the most severe supply shocks on record, driven by the Middle East conflict and its cascading effects across global trade routes.
Global oil demand slumped 4.3 million barrels a day (mbd) in April, climbing to 5.5 mbd in May, driving an inventory drawdown that will keep prices elevated for longer. When stability returns, governments will race to rebuild strategic reserves — putting a floor under oil prices well beyond what current market expectations imply.
“Headline fatigue is setting in. But don't mistake the price moves for stability. The real impact is being felt on the product side — gasoline, diesel, liquefied petroleum gas (LPG), jet fuel. That's where the real stress is,” said Raman Walia, head of Commodities Sales for Asia Pacific at J.P. Morgan.
Crude oil demand destruction in numbers
Infographic comparing monthly volumes (million barrels per day). May: 5.5 mbd (shown with mostly filled blue oil-drop icons). April: 4.3 mbd (mostly filled orange oil-drop icons). June: 2.8 mbd (fewer filled purple oil-drop icons). Grey drops indicate the remaining amount to a common scale. Source: J.P. Morgan Global Research estimates.
Companies across the region are grappling with cash flow disruption, counterparty credit risk and margin compression — with airlines, refineries and industrials among the hardest hit. For treasurers, the immediate priority is liquidity visibility: knowing what cash is available, where it sits and how quickly it can move.
“Crude oil and petrochemicals are inputs for manufacturers across Asia Pacific. Increased costs are cascading across industries — from plastics and polymers to packaging,” said Amalia Lazarus, head of Subsidiary Banking for Asia Pacific at J.P. Morgan.
Longer term, companies are turning to regional automated liquidity structures and AI-powered forecasting tools to build resilience that outlasts any single market shock.
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