【AI Investment】Temasek holds OpenAI and Anthropic. Its $400 billion portfolio plans to increase AI allocation to 15%.

Singapore sovereign wealth fund Temasek plans to significantly increase artificial intelligence (AI)-related investments, aiming to raise the proportion of AI-related assets from the current about 6% to up to 15% before 2031.

For the fiscal year ending March 2026, Temasek's net portfolio value grew 14.8% year-on-year in U.S. dollar terms, reaching about $400 billion, hitting a record high for the second consecutive year. The group currently holds investments in AI companies such as OpenAI and Anthropic.

CEO Dilhan Pillay said the rapid development of AI is entering a critical phase that will bring a wealth of new opportunities. The group plans to deploy capital in five areas, including energy and data centers, semiconductors, cloud service providers, foundational models, as well as AI applications and software infrastructure.

Other Holdings Must Also Use AI

Pillay said the group will not only invest in AI companies but also wants the rest of its portfolio to accelerate AI adoption. In other words, up to 15% constitutes direct AI-related investments; the remaining about 85%, while not necessarily AI companies, must also leverage AI to enhance competitiveness and operational efficiency.

Temasek said its performance in the last fiscal year benefited from asset sale gains and the performance of Singapore-based companies. During the period, it invested about $39.4 billion, sold about $23.9 billion in assets, and had net investments of about $15.4 billion. New investments included Anthropic, OpenAI, China's Luckin Coffee, and European luxury group Ermenegildo Zegna.

However, the external environment remains challenging, including uneven economic recovery in China, geopolitical tensions, and market volatility triggered by the Middle East conflict, which caused the portfolio value to fall 2% in the final month of the fiscal year.

Simultaneously Increasing Private Credit and Infrastructure Investments

To balance the high growth and high volatility characteristics of AI investments, Temasek also plans to increase its allocation to more stable assets. The group aims to raise the proportion of private credit from the current 2% to 5% by 2031, focusing on senior secured debt.

Temasek also plans to increase the share of "core plus infrastructure" from 1% to 5%, covering areas including electrification, data centers, and the energy transition. The group's 10-year annualized return is 7.1%, and its 20-year annualized return is 6.8%.