Southeast Asian nations are competing to establish themselves as the region's leading hub for artificial intelligence (AI) development. However, the startup ecosystem in Southeast Asia is facing challenges, with funding for startups declining for the third consecutive year in 2024, now at only a fifth of its peak level in 2021. This decline is attributed to disappointing performances from several startups that had received funding in previous years. Additionally, U.S. seed-stage investments have also seen a slight decrease, particularly in industries that have been underperforming recently. The situation highlights the difficulties faced by the startup sector in attracting investment amid a challenging economic landscape.