How the AI value chain is reshaping APAC deal flow - PitchBook

A PitchBook article titled 'How the AI value chain is reshaping APAC deal flow' reports that artificial intelligence is now the primary driver of large private equity and venture capital deals across Asia-Pacific. The deals cover all segments of the AI value chain, including frontier model development, semiconductor fabrication, data center construction, and energy infrastructure. The analysis provides a regional breakdown of where investment is concentrated.

Specifically, the article notes that China leads in frontier model development, drawing significant investment into AI research and large language model companies. South Korea and Taiwan dominate the semiconductor portion of the value chain, with established chip manufacturing capabilities attracting deals. These regional specializations are shaping the deal landscape.

The article suggests that this geographic specialization reflects the natural evolution of the AI industry, with different regions leveraging their comparative advantages. Investors are positioning themselves along the value chain, from model creators to hardware producers to infrastructure operators.