Major AI firms from the U.S. and China are setting up operations in Singapore, betting the city-state can serve as a politically neutral hub for the region—though recent government moves suggest that neutrality may be harder to maintain.

What happened: OpenAI opened a regional office in Singapore in 2024 and committed $234 million（約370億円） to growing the country's AI ecosystem, including an applied AI lab—the first outside of the U.S. Google DeepMind, Anthropic, and Chinese firms like Tencent have also established or expanded operations there. Plaud announced it would spend 10 million Singapore dollars ($7.8 million（約12億円）) to expand its local operations and grow headcount from 100 to 150 by the end of the year.

Why it matters: Singapore markets itself as a stable, trustworthy place to do business—an advantage as global AI firms shift focus from building giant models to selling real-world applications. For Chinese tech companies, Singapore serves as a crucial first step to operate globally while avoiding regulatory constraints at home. For U.S. firms, the country offers access to a large customer base in Asia Pacific. However, the deal last month where Beijing forced the unwinding of Meta's $2 billion（約3200億円） acquisition of Manus AI—despite the company being legally based in Singapore—signals that Singapore's neutrality cannot shield a company from either superpower's scrutiny.

What to watch: Singapore released its national AI R&D plan in January and announced a 1 billion Singapore dollar investment in AI infrastructure. The country plans to open an AI industrial park called Kampong AI in 2028 with workspaces and housing to attract startups. Whether major U.S. restrictions—such as the recent U.S. government bar on non-U.S. individuals accessing Anthropic's Mythos model—will limit Singapore's ability to attract and retain AI talent and operations.