I have mixed feelings about sharing that last month, OpenAI acquired one of our portfolio companies. Some members of the Tekedia Capital family are understandably disappointed, believing the transaction did not capture the company’s state of play. I agree. Nonetheless, I have encouraged everyone to focus on the bigger picture because we’re learning fast on people you back.

At Tekedia Capital, our mission is simple: invest in companies that can create meaningful value from the moment we write our cheques. But beyond identifying great opportunities, we also hope to partner with founders who are building enduring companies, not merely seeking the fastest exit possible.

Just as patient capital matters, executional patience matters as well. You build with the conviction that the true win lies in solving market frictions, creating lasting value, and transforming industries, not in cashing out the moment a large cheque appears.

Every outcome offers lessons, and every journey strengthens our conviction. To the Tekedia Capital family: better deals and even greater opportunities lie ahead. To OpenAI, appreciation that you can even discover something valuable in an enterprise we are involved in.

Manufacturing activity across major economies demonstrated notable resilience last month, with Europe recording its strongest quarter since early 2022 and Asian producers receiving a significant lift from the ongoing artificial intelligence investment boom, according to business surveys released on Wednesday.

The data offered some reassurance amid the lingering effects of the U.S.-Israeli conflict with Iran, though persistent cost pressures and supply chain strains highlighted the challenges still facing industrial sectors worldwide. While energy costs tied to the Middle East disruptions have eased somewhat, analysts caution that the full impact on global supply chains may not yet be fully reflected in the latest figures.

S&P Global noted that most survey responses were collected before the signing of a memorandum of understanding for a ceasefire between the U.S. and Iran on June 17, meaning the complete effects on supply chains and energy prices are still working their way through the system.

Inflation in the euro zone came in lower than expected at 2.8% last month, though it remained well above the European Central Bank’s 2.0% target, according to official data.

“The inflation rate in the euro zone fell noticeably in June,” said Ralph Solveen at Commerzbank. “A key reason is that oil prices fell significantly over the past month due to the partial reopening of the Strait of Hormuz.”

The ECB had raised interest rates on June 11 in response to a war-related energy cost surge that had pushed inflation above 3%. The S&P Global Eurozone Manufacturing PMI slipped to a four-month low of 51.4 in June from 51.6 in May, but remained above the 50.0 threshold separating growth from contraction for a fifth consecutive month. The reading was slightly above a preliminary estimate of 51.3. German factory activity expanded modestly, while France’s grew slightly faster than initially forecast. In Britain, manufacturing cooled despite a boost to output from stockpiling ahead of anticipated price increases.

AI Boom Provides Critical Support for Asian Producers

The surveys underscored how the global AI investment wave is reshaping economic fortunes across Asia. Strong demand for chips, data-center equipment, and other technology goods has provided a powerful engine for growth, acting as a buffer against mounting geopolitical and trade risks.

China, Japan, and South Korea all saw factory activity expand in June on solid demand for chips, computers, and other AI-related products, along with stockpiling by firms seeking to guard against shortages and price rises linked to the Middle East conflict.

RatingDog’s General Manufacturing China PMI hit 51.7 in June, marking expansion for a seventh straight month. It eased slightly from May’s 51.8 but exceeded analysts’ forecast of 51.6. The reading aligned with an official survey on Tuesday, showing factory activity returning to expansion on robust export orders.

Japan’s PMI rose to 54.8 from 54.5, expanding for a sixth consecutive month with new orders growing at their fastest pace in more than two years. However, input cost inflation remained at a nearly four-year high, signaling mounting price pressures that could crimp corporate margins and contribute to broader inflation.

South Korea’s factory activity expanded for a seventh consecutive month, though at a slower pace due to falling export demand.

“Firms frequently reported that rising raw material prices, alongside difficulties sourcing and receiving inputs due to delays and shortages, weighed on sector performance,” said Usamah Bhatti, economist at S&P Global Market Intelligence.

Factory activity in most other Asian emerging economies also continued to expand. The Philippines held steady at 50.9 from 50.8, while Malaysia rose to 50.7 from 49.9. Taiwan and Vietnam also recorded expansion.

A separate survey showed India’s manufacturing sector expanded at its second-slowest pace in four years as export orders suffered from softer demand in Europe.

Across both regions, cost pressures moderated somewhat but stayed elevated. Supply shortages and shipping delays continued to lengthen lead times, suggesting the energy shock from the Middle East conflict could still intensify in the coming months.

The data provides a mixed picture for policymakers. In Europe, the modest manufacturing expansion offers some relief as the ECB grapples with above-target inflation. In Asia, the AI-driven strength highlights the region’s growing role in global technology supply chains and its relative resilience to geopolitical disruptions.

For businesses, the surveys point to an environment where demand for technology-related goods remains robust, but input costs and supply chain frictions require careful management. Companies in AI-adjacent sectors appear better positioned to weather current challenges, while those more exposed to traditional manufacturing and energy costs face greater headwinds.

The European Union has taken another major step to curb the rapid expansion of Chinese ultra-low-cost online retailers, introducing new import fees on small parcels that had long entered the bloc duty-free.

The measure marks the latest escalation in a global crackdown on business models used by platforms such as Shein, Temu and Alibaba-owned AliExpress, following similar action by the United States earlier this year.

From Wednesday, the EU began imposing a €3 customs handling fee on low-value e-commerce imports from China that previously qualified for the bloc’s €150 “de minimis” duty exemption, a customs rule that has been in place for decades. The new charges are intended to address what European policymakers describe as widespread abuse of the exemption, which they say has given Chinese online retailers an unfair competitive advantage over European businesses.

The fees are charged per customs classification within each shipment rather than per parcel. For example, a package containing three different categories of products would incur €9 in charges, while a parcel containing several dresses or multiple toys within the same product category would attract a single €3 fee.

The move follows a dramatic surge in low-value e-commerce imports into the European Union. According to EU data, parcels entering under the exemption increased from 1.4 billion in 2022 to 5.8 billion in 2025, highlighting the explosive growth of cross-border online shopping led by Chinese platforms.

The duty-free exemption for low-value imports dates back several decades, while the current €150 threshold was introduced in 2008, long before the emergence of today’s global e-commerce giants.

EU lawmaker Dirk Gotink, who leads customs reform in the European Parliament, said the system was no longer fit for modern global trade.

“In a different trading world this made a lot of sense, but that world doesn’t exist anymore. It’s been turned on its head by e-commerce, especially from China,” Gotink said.

“The exemption was abused and misused on an industrial scale to create a competitive advantage at the expense of EU businesses.”

Global Pressure Mounts On Chinese E-Commerce Platforms

The EU’s decision comes after the United States dismantled its own de minimis exemption, first ending duty-free treatment for imports from China in May, before extending the policy to all imports at the end of August.

That U.S. crackdown had prompted many Chinese retailers to shift greater volumes toward Europe, making the bloc an important growth market. Analysts say the EU’s latest action now removes one of the last major regions where the business model remained largely intact.

Derek Lossing, an e-commerce and air cargo consultant at Cirrus Global Advisors, expects the policy to have an immediate impact on global shipping volumes.

He estimates that air shipments of e-commerce goods into Europe could decline by between 10% and 35% in the weeks following implementation.

“The question is how effective the platforms are in pivoting to other markets,” Lossing said.

“When the U.S. ended de minimis, Europe was a really good alternative that platforms could shift to – but now there’s not a really clear alternative to Europe.”

Lossing added that major platforms will likely attempt to limit the impact on consumers by pressuring suppliers to absorb part of the additional costs.

Consumer Prices Expected To Rise

While platforms may absorb some of the new expenses, analysts expect European shoppers to ultimately face higher prices as import costs are gradually passed through the supply chain.

The temporary €3 fee will remain in place until July 1, 2028, when the EU Customs Authority is scheduled to begin operations. At that point, the flat fee will be replaced by category-specific customs duties, creating a more comprehensive import regime for cross-border online retail.

Chinese retailers have already begun adjusting their operations ahead of the changes. Shein has expanded warehouse capacity in Wroclaw, Poland, allowing it to import products into Europe in bulk before distributing them across the bloc. The strategy reduces reliance on individual cross-border parcels and helps lower customs-related costs.

Alibaba-owned AliExpress said product listings will now display a “Price includes duties and VAT” label where applicable. For products where charges are not already included, customers will receive a detailed breakdown of import duties before completing their purchase.

Amazon, which launched its budget shopping platform Amazon Haul to compete with Temu and Shein, said its European operations are far less exposed to the new rules. According to the company, 97% of its EU shipments in 2025 were fulfilled from warehouses located within the European Union, limiting the impact of the new import fees.

For products shipped from outside the bloc, Amazon said customers will similarly receive a full breakdown of applicable import charges before checkout.

Retailers Welcome Tighter Regulation

The EU’s latest action reflects growing concerns among policymakers and traditional retailers that Chinese platforms have exploited customs exemptions, low-cost manufacturing and direct-to-consumer shipping to undercut domestic competitors.

European retailers have long argued that local businesses face stricter regulatory requirements, product safety obligations and tax rules than overseas competitors selling directly to consumers.

The new import charges represent one element of the EU’s broader customs reform agenda, which aims to modernize border controls, improve enforcement against under-declared shipments and create a more level playing field for European retailers.

With both the United States and the European Union now tightening restrictions on low-value imports, Chinese e-commerce companies face mounting pressure to overhaul their international logistics strategies, expand local warehousing and absorb higher operating costs as regulators move to close loopholes that fueled years of explosive global growth.

After two years of aggressive cost-cutting and promises that artificial intelligence would replace large sections of the workforce, a growing number of companies are reversing course, rehiring employees after discovering that AI systems still struggle with complex, judgment-based and customer-facing tasks.

The trend is emerging at a time when investors are questioning how quickly companies can generate meaningful returns from the hundreds of billions of dollars being poured into artificial intelligence. It also suggests that many businesses are moving away from an “AI replacing humans” strategy toward one where AI augments employees rather than eliminates them.

Among the latest companies to reverse course is Ford Motor, which is bringing back hundreds of experienced engineers after finding that automated systems could not adequately address vehicle quality issues.

The automaker said experienced human engineers remain essential in areas requiring technical judgment and real-world problem-solving.

“Artificial intelligence is a fantastic tool, but it’s only as good as the information you use to train it,” Charles Poon, Ford’s vice president of vehicle hardware engineering, said.

Ford’s decision highlights one of the industry’s biggest challenges: while AI excels at analyzing large volumes of structured data, it remains less capable when confronted with unpredictable manufacturing defects, engineering trade-offs and nuanced quality assessments that rely heavily on human experience.

Besides Ford, several large companies that previously reduced headcount in favor of AI have since reinstated workers after finding the technology unable to fully perform critical business functions.

Australia’s Commonwealth Bank (CBA) became one of the highest-profile examples.

Last year, the bank eliminated more than 40 customer service positions after deploying an AI-powered voice assistant designed to automate customer enquiries. But the system struggled to manage customer interactions effectively, contributing to increased call volumes and forcing the bank to reverse the redundancies.

“Getting CBA to rescind these job cuts is a massive win,” Australia’s Finance Sector Union said after the decision.

According to an ABC report published in August last year, the bank acknowledged mistakes in its original assessment. CBA admitted it “did not adequately consider all relevant business considerations” before announcing the redundancies and conceded that “we should have been more thorough in our assessment of the roles required.”

The experience reveals a broader issue confronting many organizations: replacing experienced customer service professionals with AI often creates new operational bottlenecks rather than eliminating them.

IBM Discovers Limits Of AI In HR

IBM has also reassessed how far AI can replace employees. The company successfully automated around 94% of routine human resources enquiries, dramatically improving efficiency in repetitive administrative work.

However, the remaining 6% proved significantly more challenging. Those requests frequently involved ethical questions, complex employment issues or situations requiring human judgment and empathy—areas where AI struggled to provide satisfactory responses.

Rather than continuing to reduce headcount, IBM announced plans to triple its U.S. entry-level hiring across all business units during 2026, recognizing that future talent pipelines require sustained investment.

“If we don’t continue to invest in entry-level hires, what happens in three-five years?” IBM Chief Human Resources Officer Nickle LaMoreaux said during the Charter AI Summit in New York.

“There’s no pipeline; the well simply dries up.”

Her comments bolster growing concern among corporate leaders that excessive reliance on automation risks creating long-term shortages of experienced professionals.

Businesses Admit AI-Related Layoffs Were Mistakes

Evidence is increasingly emerging that many companies may have underestimated the continued importance of human workers.

According to research by Orgvue, 39% of business leaders said their organizations made employees redundant because of AI deployment. However, 55% of those executives later acknowledged that at least some of those redundancy decisions had been wrong.

The findings suggest many companies moved too aggressively in replacing staff before fully understanding AI’s operational limitations.

Research from Robert Half paints a similar picture.

Data shared with CNBC found that 32% of U.S. hiring managers said they eliminated a role primarily because of AI and subsequently rehired someone for the same or a similar position. That trend indicates that while AI can improve productivity, it often cannot fully substitute for experienced workers, particularly in positions involving customer interaction, decision-making, creativity or oversight.

Industry analysts note that many organizations focused too heavily on reducing labor costs without investing sufficiently in employee training and AI integration.

According to Intuition Labs, companies frequently underestimate the importance of maintaining experienced staff capable of supervising AI systems.

“Budgeting on ‘tech to replace humans’ without investing in training or upskilling left teams unprepared to leverage AI.”

The report added that many organizations eventually regretted removing precisely the employees needed to make AI successful.

“Notably, among companies pushing automation, many later ‘regretted’ layoffs, having cut the very people needed to oversee AI.”

Human oversight has become increasingly important as businesses encounter inconsistent AI outputs, hallucinations and difficulties applying AI-generated recommendations in real-world situations.

Jessica Zhang, Senior Vice President for Asia-Pacific at HR technology provider ADP, said organizations frequently discover that AI still requires substantial human supervision.

“Where AI outputs are inconsistent, inaccurate, or difficult to apply, companies often need to reintroduce human oversight,” Zhang said.

“This can lead to duplicated effort, slower decision-making and diminished productivity gains.”

AI Shifts From Replacement To Collaboration

Rather than abandoning artificial intelligence, companies appear to be adopting a more balanced strategy in which AI enhances employee productivity instead of replacing workers outright. This shift aligns with broader industry thinking that AI delivers its greatest value when paired with skilled professionals capable of interpreting, validating and applying its outputs.

Capitol Technology University said the latest hiring trends illustrate that businesses are moving toward collaborative AI models.

“AI is changing the workplace, but it’s becoming clear that organizations are finding more value in building human-AI collaboration versus replacing human work entirely,” the university said.

The changing strategy also comes as investors scrutinize whether the massive wave of AI spending by corporations can generate sustainable returns. Technology companies and large enterprises are collectively investing hundreds of billions of dollars in AI infrastructure, software and automation, yet many executives are discovering that productivity gains often depend as much on skilled employees as on the technology itself.