AI丨Temasek: Plans to significantly increase AI investment proportion to 15%

Singapore sovereign wealth fund Temasek said on Wednesday that it plans to significantly increase its investments in artificial intelligence (AI) companies, aiming to raise the investment ratio from the current 6% to 15% over the next five years. Temasek holds stakes in Anthropic and OpenAI.

CEO Dilhan Pillay stated at a briefing that the rapid development of AI represents a critical phase and will create huge new opportunities. Temasek will review all its portfolio holdings from an AI perspective, and the remaining 85% of the portfolio must focus on AI applications to remain competitive.

He said Temasek plans to invest in five key areas, including energy and data centers, semiconductors, cloud service providers, foundation models, and AI applications and software infrastructure.

Temasek also announced that its net portfolio value rose to S$518 billion (approximately HK$3.14 trillion) in the last fiscal year, hitting a record high for the second consecutive year, with growth of 10.5% in Singapore dollar terms and 14.8% in US dollar terms. By comparison, the MSCI All-Country World Index rose 17% over the same period, but Temasek’s portfolio differs from public equity benchmarks in terms of structure, investment objectives, and asset allocation.

Over the long term, Temasek’s 10-year annualized return is 7.1%, and its 20-year annualized return is 6.8%.

In the last fiscal year, Temasek invested S$51 billion and sold S$31 billion in assets, resulting in a net investment of S$20 billion.