JANUARYASIA BUSINESS OUTLOOK9NEWSROOMISRAELI STARTUP LEGATO RAISES $7M FOR AI-POWERED SAAS APPSAlibaba Group formed a joint venture valued at 250 million yuan, or about US$35 million. The company entered into an agreement worth 9 million with China National Nuclear Power Co.This marks a strategic step to improve energy security as the company expands its data center and artificial intelligence infrastructure.This partnership fits a wider global pattern where major technology companies, such as Meta and Microsoft, are working with nuclear and other clean energy suppliers to lock in steady, low-carbon electricity for computing workloads that require large amounts of power.Alibaba has committed more than US$53 billion over the next few years for AI research and data center development, with a large share set aside for expanding its infrastructure.Key Highlights· Alibaba forms RMB 250 million yuan JV with China National Nuclear Power· Partnership supports data center and AI energy needs· Focus on low-carbon, reliable power infrastructureThe venture suggests Alibaba is looking at other power options, but the company has not shared the main details. The business scope is still unclear, including whether the partnership will cover building and running nuclear power plants or focus on power trading and project development.With a registered capital of RMB 250 million, funding for large plant construction appears limited at this stage, which points to a near-term focus on pilot-scale projects or setting up energy supply and purchasing agreements.Capacity targets, project locations, and timelines have not been announced yet. China's green electricity trading framework is giving technology companies more ways to secure low-carbon power, including long-term power purchase agreements and Green Electricity Certificates.Energy technology firms can support this shift by providing battery storage, grid balancing services, and smart energy management systems that help keep data centers running without downtime. Israeli startup Legato has raised US$7 million in seed funding to accelerate the development of its AI-powered application creation platform designed for enterprise SaaS environments.The funding round was led by S Capital VC, with participation from Cerca Partners.Founded in 2025, Legato focuses on enabling business users--not software developers--to build custom applications and workflows using natural language instructions directly within existing enterprise SaaS platforms.The company's approach allows organizations to maintain platform governance, security, and control, while dramatically reducing the time and cost traditionally associated with enterprise software customization. Legato's technology is built to operate inside current software ecosystems rather than replacing them.Key Highlights· Legato raises $7M seed funding led by S Capital VC· AI platform lets business users build apps using natural language· Expansion planned across finance, healthcare, telecom, and energyBy embedding AI-driven app creation capabilities into SaaS platforms, the startup addresses one of the biggest pain points in enterprise IT: slow, expensive, and developer-dependent customization processes.With the new funding, Legato plans to expand its research and development efforts and grow its AI engineering team. The company is currently working with SaaS providers in customer relationship management (CRM) and human resources (HR) systems.It also intends to extend its solutions into additional verticals, including financial services, healthcare, telecommunications, and energy.Legato's vision centers on democratizing application development within enterprises by empowering non-technical users to create tools, workflows, and automations quickly and independently--without compromising enterprise-grade compliance or operational oversight. ALIBABA TIES UP WITH NUCLEAR FIRM TO POWER DATA CENTERS
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