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Chinese AI entrepreneur moves to Singapore for growth amid Beijing’s crypto curbs
- David Li’s GreaterHeat is among a wave of Chinese AI-focused companies that are attracted to Singapore’s aim to grow the industry
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Published: 2:00pm, 20 Jul 2024
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David Li, chief executive of GreaterHeat, a Singapore-based tech company specialising in artificial intelligence (AI) and Web3 infrastructure solutions, turned on a small kettle at his office desk overlooking Marina Bay and prepared a porcelain tea set for his guests in a room.
As the 34-year-old Chinese national opened a packet of Fujian red tea leaves and carried out an elaborate tea-pouring ritual, he mused about the origin of the drink: “I always prefer Chinese tea, after all, tea-drinking started in China.”
But he was less glowing about his company’s prospects had he remained in his country.
“Our ambition wasn’t to be a small business which would make just enough money to feed ourselves in China. Our vision was to be an internationally successful enterprise, so we had to move abroad. Big whales have to swim in the sea,” Li told This Week in Asia.
Originally based in Hangzhou, GreaterHeat’s previous incarnation, Digicode, saw its business grow multifold for several years up to 2020.
However, with the Chinese government taking a tough stance on cryptocurrency from 2021, Li sought his fortunes elsewhere as crypto-mining was one of GreaterHeat’s core services.
“For Chinese people, major business and living hubs include mainland China, Hong Kong, Taiwan and Singapore. We had already decided we wanted to leave mainland China. Taiwan and Hong Kong have their issues and uncertainties, so we chose Singapore,” Li said in Mandarin.
Visitors look at a robot arm during the World Artificial Intelligence Conference in Shanghai on July 5. Photo: AFP
Hong Kong never crossed his mind because it was too geographically close to China, he added. GreaterHeat moved to Singapore in 2021.
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GreaterHeat is among the wave of Chinese AI companies moving to Singapore following American restrictions targeting the mainland’s access to top-range chips and other hi-tech equipment.
Singapore was home to more than 1,100 AI start-ups at the end of last year, according to media reports. The city state does not break down the data by country.
The exodus comes as AI and Web3 are hailed as the tech engines that will decentralise the internet through distributed databases and transform businesses by creating new products and services.
Under Singapore’s AI strategy, the government has pledged to increase its incentives for the sector, including backing expansion programmes for AI start-ups and encouraging companies to set up AI “centres of excellence”.
In 2022, GreaterHeat posted US$27 million in revenue. Its revenue rose to more than US$37 million in 2023, according to Li. The company now has about 100 employees worldwide, with offices in South Korea, Malaysia and Texas.
Li said the main reasons Singapore appealed to AI companies were its legal system, strong intellectual property protection, and its multilingual and multicultural society.
GreaterHeat CEO David Li
AI companies choose Singapore not solely to target the American market, according to Li. “If entering the US market was the goal, one could simply set up headquarters in San Francisco or Silicon Valley. The primary reason for AI companies being headquartered in Singapore is its high level of internationalisation, which allows businesses to easily conduct global operations,” Li said.
The overwhelming majority of his 15-strong staff in the Singapore office are local, with Li saying these Singaporean workers are “very adept to the global business environment”.
In his initial assessment of the business situation in China, Li found that opportunities were likely to shrink for his start-up over the long term, particularly because of fierce competition involving many companies. A slowdown in foreign direct investment was also another reason why he decided to relocate his company.
“In China now there’s overcompetition among lower-level companies. It’s like students who all want to achieve good grades and so sometimes they spend double or triple the effort to get good grades but often it’s time and effort wasted.”
The company had achieved its goal of deriving at least 80 per cent of its revenue outside China as of this year, with South Korea, Malaysia and Japan being its key markets, Li said.
Li intends to stay in Singapore for the long haul. His wife gave birth to their first child, a son, in Singapore last year and their application for permanent residency is pending. He has even become fond of black pepper crabs, a popular local dish.
Recent heightened checks on foreign wealth by the local authorities in light of the S$3 billion (US$2.2 billion) money-laundering bust have not deterred Li from expanding his business in Singapore.
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“We welcome the regulations and policies in Singapore. I’m a businessman, I’m not afraid of policies and regulations. I’m more afraid of uncertainty,” Li said.
“In Singapore, adherence to the regulations ensures that you can conduct your business without interference. Additionally, policy changes are typically introduced with a grace period, allowing ample time for adaptation rather than immediate enforcement.”
Expressing confidence in the AI industry’s long-term outlook in Singapore, Li said he wanted to work with the government because he believed its goals and that of GreaterHeat were in alignment.
Outside work, Li said his family had found living in Singapore to be very comfortable, given its safe and clean environment. The family rent a condominium unit, located just five minutes by foot from Li’s office. Li and his wife have also made new friends from Henan, where they are originally from, who stay near their condominium.
“When my son starts school here we will have to move further away from the office. We want to make sure we’re close to his school to prioritise his needs, so I’ll naturally take a back seat as the second priority in our family.”
