Key facts
- Temasek Holdings will prioritize AI investments over cryptocurrencies.
- The fund plans to increase its AI exposure from 6% to 15% of its portfolio by 2031.
- Temasek suffered a $275 million loss from the collapse of FTX in 2022.
- The firm noted that some AI valuations have outpaced business fundamentals.
- Temasek has no direct crypto investments currently but will continue exploring blockchain technology.
Singapore's state-owned investment firm, Temasek Holdings, announced it will prioritize artificial intelligence investments over cryptocurrencies, citing regulatory uncertainty and the lingering impact of a $275 million write-off from the collapse of FTX in 2022. The firm, with an investment portfolio valued around 518 billion Singapore dollars ($400 billion), plans to increase its AI exposure from 6% of its portfolio in the first quarter of 2026 to 15% by 2031. Nagi Hamiyeh, president of Temasek Global Investments, told CNBC that the AI investment cycle has just begun and will continue for decades, though he cautioned that valuations in some parts of the industry have run ahead of fundamentals. Temasek stated it currently has no direct crypto investments but will continue to explore blockchain technology and its potential to transform the real economy, emphasizing the importance of AI applications and companies that build a competitive advantage.