Key facts
- Temasek is comfortable with current AI spending levels, according to executive Jane Atherton.
- The state investor believes hyperscalers' investments will yield risk-adjusted returns.
- Temasek holds stakes in AI companies Anthropic and OpenAI.
- The firm plans to increase its AI ecosystem investment to 15% of its portfolio in five years.
- Temasek's overall holdings are valued at about $400 billion.
Singapore's state investor Temasek is not concerned about the substantial spending by hyperscalers on artificial intelligence infrastructure, according to Jane Atherton, Temasek's North America Head. Speaking at the Reuters Investment USA event on Thursday, Atherton stated that the companies funding the AI buildout possess strong balance sheets and believe their large-scale investments will generate risk-adjusted returns as AI adoption grows.
Analysts forecast hyperscaler capital expenditures to exceed $1 trillion by 2027, driven by the need for costly chips and data centers. Despite concerns about the sustainability of these commitments in a high-interest rate environment, Atherton expressed continued optimism about AI.
Temasek, which has an overall portfolio valued at approximately $400 billion, holds stakes in AI firms Anthropic and OpenAI. Its US holdings constitute 26% of its portfolio, with significant investments in financial services and technology companies like BlackRock, Mastercard, and Nvidia.
The firm previously announced plans to increase its investment in the AI ecosystem to as much as 15% of its portfolio within the next five years, up from its current 6%. Atherton also acknowledged the ongoing discussion about AI safety, stating that governments and AI developers must address the risks associated with rapid advancements.