AI’s expansion into the physical world is reshaping what investors choose to back
Updated
February 12, 2026 1:21 PM
Exterior view of the Exchange Square in Central, Hong Kong. PHOTO: UNSPLASH
Artificial intelligence is often discussed in terms of large models trained in distant data centres. Less visible, but increasingly consequential, is the layer of computing that enables machines to interpret and respond to the physical world in real-time. As AI systems move from abstract software into vehicles, cameras and factory equipment, the chips that power on-device decision-making are becoming strategic assets in their own right.
It is within this shift that Axera, a Shanghai-based semiconductor company, began trading on the Hong Kong Stock Exchange on February 10 under the ticker symbol 00600.HK. The company priced its shares at HK$28.2, debuting with a market capitalization of approximately HK$16.6 billion. Its listing marks the first time a Chinese company focused primarily on AI perception and edge inference chips has gone public in the city — a milestone that underscores growing investor interest in the hardware layer of artificial intelligence.
The listing comes at a time when demand for flexible, on-device intelligence is expanding. As manufacturers, automakers and infrastructure operators integrate AI into physical systems, the need for specialized processors capable of handling visual and sensor data efficiently has grown. At the same time, China’s domestic semiconductor industry has faced increasing pressure to build local capabilities across the chip value chain. Companies such as Axera sit at the intersection of these dynamics, serving both commercial markets and broader industrial policy priorities.
For Hong Kong, the debut adds to a cohort of technology companies seeking public capital to scale hardware-intensive businesses. Unlike software firms, semiconductor designers operate in a capital-intensive environment shaped by supply chains, fabrication partnerships and rapid product cycles. Their presence on the exchange reflects a maturing investor appetite for AI infrastructure, not just consumer-facing applications.
Axera’s early backer, Qiming Venture Partners, led the company’s pre-A financing round in 2020 and continued to participate in subsequent rounds. Prior to the IPO, it held more than 6 percent of the company, making it the second-largest institutional investor. The public offering provides liquidity for early investors and new funding for a company operating in a highly competitive and technologically demanding sector.
Axera’s market debut does not resolve the competitive challenges of the semiconductor industry, where innovation cycles are short and global competition is intense. But it does signal that investors are placing tangible value on the hardware, enabling AI’s expansion beyond the cloud. In that sense, the listing represents more than a corporate milestone; it reflects a broader transition in how artificial intelligence is built, deployed and financed — moving steadily from software abstraction toward the silicon that makes real-world autonomy possible.
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Here’s the story of how a quirky toy transformed into a worldwide phenomenon.
Updated
January 8, 2026 6:35 PM
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Labubu vinyl figure displayed with surprise blind boxes in a store in Guayaquil, Ecuador. PHOTO: ADOBE STOCK
Trends move fast. One moment it's Dubai’s viral “Kunafa” chocolate bar, the next it’s Labubu—a mischievous-looking doll—racks up US$670 million in revenue this year, even outpacing Barbie and Hot Wheels. Celebrities like BLACKPINK’s Lisa and Dua Lipa have been spotted with Labubu dolls—whether as bag charms or in playful social posts.
For those unfamiliar, Labubu is the breakout character from the book series“The Monster” by Hong Kong-born, Belgium-based artist Kasing Lung. Alongside Labubu, the series features other quirky monsters like Zimomo, Mokoko and Tycoco—often grouped together as “Labubus”. These vinyl Labubu figures first entered the collectible scene in 2011 as “Monsters”, produced by Hong Kong-based production house How2Work. In 2019, Lung signed an exclusive licensing deal with Pop Mart, a Beijing-based toy collectible company, which further boosted the recognition and popularity of the franchise.
At first glance, Labubu might seem like just another fad. But the craze shows something deeper: in digital marketing, virality doesn’t happen by accident. It’s the result of timing, relatability and the rway global communities amplify trends.
So, what can marketers learn from the Labubu phenomenon? Let’s take a closer look.
Labubu’s unconventional aesthetics—a notorious grin, sharp teeth and wide eyes—break the traditional mold of “cute” toys. The social listening report from Meltwater, a media intelligence company reveals that from January to May 2025, mentions of “cute” outnumbered “ugly” nearly five to one. This “ugly-cute” look gave Labubu its identity and helped it stand out in a crowded market.
Marketing lesson: In a world of where everything blends together on endless feeds, uniqueness wins. Standing out with bold, even unconventional design choices can spark curiosity and desire. By leaning into what makes a product different, brands create instant recognition and give people something worth talking about.
Labubu’s surge in popularity is deeply rooted in Pop Mart’s focus on building genuine relationships with its fans. The company encourages user-generated content— unboxings, fan art, influencer stories—that fueled Labubu’s spread online and build brand engagement. Fans weren’t just buying toys; they were becoming part of a community that celebrated each new design.
Marketing lesson: Customers don’t want to feel like faceless buyers. They want to feel seen, heard and part of something bigger. By encouraging engagement and valuing contributions, brands can turn casual customers into loyal advocates who spread the word on their behalf.
While Pop Mart notes Labubu is most popular among women aged 18–30, its audience has broadened beyond that group. The design draws on influences from Nordic mythology and East Asian “kawaii” culture, making it feel both familiar and new to global audiences.
For Millennials and Gen Xers, Labubu also sparks nostalgia for toy crazes like Tickle Me Elmo and Beanie Babies that once lit up childhoods before fading away. Together, these layers of cultural resonance and cross-generational charm give Labubu an unusually broad reach.
Marketing lessons: Relatability is a powerful driver of virality. When a product can connect across generations and cultures, it expands far beyond a niche fan base. Brands that blend familiarity with novelty can build bridges to much larger audiences.
Labubu’s blind box model makes buying feel like a game. The thrill of not knowing which design you’d unwrap made collecting Labubus fun. It also turns buying into an emotional experience rather than a rational choice, fueling the urge to complete entire collections.
Besides, the suspense itself became content—millions watched unboxing videos to share in the excitement. Even BLACKPINK’s Lisa admitted she began with “only three to four” Labubus but soon wanted “a whole box” of the latest collection.
Marketing lesson: Mystery creates excitement, and excitement drives repeat purchases. By adding an element of surprise, brands can make the buying experience feels less like a transaction and more like a story unfolding. That thrill keeps customers coming back and makes the product easy to share online.
Pop Mart releases Labubus in limited drops, often tied to holidays or cultural events. Some editions include ultra-rare “chase” figures—appearing only once in every 144 boxes—creating a strong sense of urgency and fear-of-missing out (FOMO) among buyers. This strategy fuels a booming resale market, where regular figures retailing at US$25 can sell for US$200–US$300, and rare editions have even fetched prices up to US$150,000.
Marketing lessons: Scarcity isn’t just about limiting supply—it’s about building anticipation. By tying releases to events and sprinkling in rare editions, brands keep fans watching for the next drop. This combination of urgency and exclusivity transforms ordinary products into must-have collectibles.
Labubu has expanded its reach through creative brand collaborations. For instance, the Labubu x Coca-Cola series features figures in iconic red-and-white themes, while a Vans Old Skool drop merged streetwear in the clothing brand’s notable checkerboard pattern with collectibles. The One Piece collaboration blended Labubu’s quirky style with beloved anime heroes, appealing to fans of both worlds.
Marketing takeaway: Collaborations breathe fresh life into a brand and open doors to new audiences. Partnering with well-known names adds cultural weight and collectible value, while keeping the brand relevant in different communities. Done right, collaborations turn niche products into mainstream sensations.
Labubu’s phenomenal success is more than a passing craze. It’s proof that bold design, authentic community building, clever scarcity and cultural collaborations can transform a quirky idea into a global movement.
For marketers, the takeaway is simple: don’t just chase trends—create something real and let your community shape the story with you. Be bold, stay authentic and bring your fans along for the ride. That’s how brands move from fleeting hype to lasting cultural icons.