AI goes global

Investors hear the same AI names over and over again: Nvidia. SpaceX. OpenAI. But while Wall Street keeps obsessing over Silicon Valley, some of the most interesting developments are happening an ocean away.

China is an obvious place to look for big AI developments, considering the country’s heavy investments in the new technology. For example, domestic companies Alibaba and Baidu each announced new AI partnerships with Apple this week. Alibaba said its Qwen model will power Apple Intelligence across the iPhone, iPad, Mac, and Vision Pro, while Baidu confirmed its search and AI technology will support Apple’s AI features in China.

The partnerships are a win for Apple, too. Shares rose 1.76% today after the company was added to China’s list of approved generative AI providers, clearing another hurdle in one of Apple’s most important markets and strengthening its ability to compete with domestic rivals in China.

Japan’s journey

China isn’t the only country becoming an AI battleground. On Wednesday, Nvidia made the case that Japan’s AI market is rapidly maturing. The chipmaker unveiled its new robotics AI model Cosmos 3 Edge, and announced partnerships with companies including Fujitsu, Hitachi, and Kawasaki Heavy Industries to expand its physical AI ecosystem in the country.

Nvidia also highlighted the expansion of Tokyo-1, Japan’s AI drug-discovery consortium, with major domestic pharmaceutical companies on board to use its AI biology tools. Those include Astellas, Daiichi Sankyo, and Ono Pharmaceutical.

These investments are part of a broader shift, as the country quietly emerges as an AI hub. In April, Microsoft committed $10 billion to building stronger AI infrastructure in Japan, and the country’s AI market is projected to reach nearly $28 billion by 2029.

India joins the race

India is also quietly minting AI winners of its own. Just yesterday, vibe-coding startup Emergent became the country’s second AI unicorn in the past month, after Sarvam AI’s valuation climbed to $1.5 billion following its latest funding round. Emergent says roughly 12 million apps have already been built on its platform.

And it doesn’t stop there: Research firm IDC expects nearly half of Indian organizations to adopt AI cloud services this year, while Bank of America reports that India is now the largest market for the adoption of Gemini, ChatGPT, and Perplexity.

How to play it: As companies look for their next leg of growth, they’ll likely begin looking beyond their own shores and increasingly need local partners to navigate regulations, reach new customers, and tailor AI to different countries. Apple needed Alibaba and Baidu to bring Apple Intelligence to China, while Nvidia is relying on Japanese manufacturers and drugmakers to expand beyond datacenters.

The AI industry has long been centered on the US, China, and South Korea, but it’s quickly expanding further—and investors would do well to keep an eye out for the little-known companies that are preparing to power the AI trade’s next phase.—SY