Temasek to Increase AI Portfolio Exposure to 15 Percent
Temasek plans to expand its AI ecosystem investments to 15 percent of its portfolio, citing the strong balance sheets of infrastructure hyperscalers.
Temasek Holdings (Private) Limited plans to increase its investments in the artificial intelligence ecosystem from approximately 6 percent to as much as 15 percent of its portfolio over the next five years. The Singaporean state investor, which holds stakes in OpenAI and Anthropic, maintains a positive outlook on the high levels of spending by hyperscalers to build AI infrastructure.
Speaking at the Reuters Investment USA event in Boston, Temasek North America Head Jane Atherton defended the sustainability of this capital expenditure despite analyst concerns regarding high interest rates and forecasts that spending will exceed $1 trillion by 2027. Atherton stated that the companies funding the buildout possess some of the strongest balance sheets in the world and expect risk-adjusted returns as AI adoption grows.
Addressing the broader implications of the technology, Atherton asserted that governments and developers must address AI safety and existential risks. She noted that while the financial outlook remains positive, the potential for catastrophic outcomes presents a unique valuation challenge, stating, "I really don’t know how you price the end of humanity, except that if it happens, it won’t really matter."
