Singapore sovereign wealth funds Temasek said it will sharply expand investments related to artificial intelligence (AI). As the valuations of AI corporations are rising quickly and concerns about overheated investment persist, the fund intends to deploy capital over the long term across AI-related industries such as data centers, semiconductors, and cloud.
According to Reuters on the 8th (local time), Temasek said it plans to raise the share of AI-related investments in its portfolio over the next five years from the current 6% to as much as 15%. Temasek is one of the major institutional investors in OpenAI, the developer of ChatGPT, and Anthropic, the developer of Claude, and views AI as a core area of its future investment strategy.
Temasek is currently widening its AI investment targets beyond specific corporations to include data centers, semiconductor chips, cloud services, AI foundation models, and software infrastructure. As AI services spread, it expects demand for computing, power, servers, and chips to grow together, and its strategy is to invest across the related ecosystem.
Temasek's net portfolio value hit an all-time high of 518 billion Singapore dollars (about 603 trillion won) as of the end of March. That was up 10.5% from a year earlier. Still, some in the industry are voicing concerns about overheated AI-related investment and overvaluation.
While increasing AI investments, Temasek also plans to expand investments in private credit and infrastructure to enhance portfolio stability. The move is seen as an effort to diversify destinations to cope with geopolitical uncertainty and market volatility, even as it invests in high-growth areas. Rohit Sipahimalani, Temasek's chief investment officer (CIO), said, "Resilience in the geopolitical environment is central to portfolio construction," adding, "We are looking for corporations with competitive advantages and resilient supply chains."
Industry watchers say Temasek is expanding investment on the view that AI is a long-term growth area that will drive changes in industrial structure, not a short-lived boom. As AI services spread and demand rises for foundational industries such as data centers, semiconductor chips, and power infrastructure, global investment competition to secure a foothold in related fields is expected to continue.