OCTOBERASIA BUSINESS OUTLOOK9NEWSROOMAI COMPANIES IN EU & ISRAEL WITNESS RESURGENCE IN INVESTMENT POST DROUGHTOn October 16, the United States, South Korea, and Japan launched a new Multilateral Sanctions Monitoring Team to oversee the enforcement of sanctions against North Korea. This move follows Russia's decision in March 2024 to block the renewal of a UN panel of experts responsible for monitoring the sanctions, a role the panel had fulfilled for the past 15 years. China abstained from the vote, leaving the UN's oversight in limbo.The new monitoring team, involving eight additional countries, including Britain, France, and Germany, will continue the work of the UN panel. It will issue regular reports on sanctions enforcement, focusing on curbing North Korea's nuclear and missile programs.The announcement was made at a press conference in Seoul, where US Deputy Secretary of State Kurt Campbell, South Korean Vice Foreign Minister Kim Hong-kyun, and Japan's Vice Foreign Minister Masataka Okano, alongside ambassadors from the participating countries, detailed the initiative. The team is intended to fill the gap left by the stalled UN panel and ensure sanctions enforcement continues amidst ongoing violations by North Korea.Although the coalition seeks to reinstate the UN monitoring system, the new team is open to any country willing to support the implementation of the sanctions. Funding for artificial intelligence (AI) and cloud companies in the U.S., Europe, and Israel is experiencing a resurgence after three years of decline and is expected to reach $79.2 billion by the end of 2024. This marks a significant 27 percent increase from 2023's figure of $62.5 billion, with generative AI companies contributing to nearly 40 percent of the total investment.According to venture capital firm Accel, AI is driving a major technological shift, surpassing previous trends such as broadband, mobile, and cloud. Notably, of the $56 billion invested in generative AI across 2023 and 2024, approximately 80 percent has gone to U.S. companies, with the remaining 20 percent directed toward firms in Europe and Israel.Key players in the U.S. include OpenAI, which raised $6.6 billion in October 2024, Elon Musk's xAI ($6 billion in May), and Anthropic, which secured $4 billion from Amazon. In Europe, companies like Mistral, Aleph Alpha, and DeepL have attracted the largest funding.In 2024, $25 billion was invested in private GenAI companies in the U.S., compared to $6.4 billion in Europe. Although Europe's funding is smaller, it's growing at a faster rate, jumping from $2.4 billion in 2023 to $6.4 billion, while the U.S. saw $22.4 billion in 2023.Despite the AI boom, Accel noted that outside of AI, the software market is shifting towards a focus on profitability rather than high growth, signaling a more cautious investment environment in other tech sectors. SOUTH KOREA, USA & JAPAN FORM COMMITTEE TO SANCTION NORTH KOREA$$$
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