BOSTON, Oct 1 — Temasek, Singapore’s state investment firm, has expressed confidence in the sustainability of current Artificial Intelligence (AI) spending levels, according to Jane Atherton, the firm’s head of North America. Speaking at the Reuters Investment USA event in Boston, Atherton noted that companies investing heavily in AI infrastructure are banking on these large expenditures to generate risk-adjusted returns as AI adoption becomes more widespread.
“Underpinning all of this AI buildout are some of the strongest balance sheets in the world… we remain incredibly positive on AI,” Atherton said. The firm’s stance comes amidst concerns about the extensive spending commitments made by technology giants in an era of high-interest rates, which have prompted a reevaluation of such investments.
Market analysts project that capital expenditures by hyperscalers—companies that provide scalable cloud computing services—will exceed $1 trillion by 2027, primarily driven by rising demand for powerful computing chips and expanded data center capabilities.
Temasek’s portfolio includes notable stakes in leading AI companies such as Anthropic and OpenAI, and the firm’s overall assets are valued at approximately $400 billion. Holdings in the Americas constitute 26% of its investment portfolio, primarily focused on the U.S. market, which includes major positions in companies like BlackRock, Mastercard, and Nvidia.
Earlier this year, Temasek announced plans to significantly increase its investments in the AI ecosystem, targeting up to 15% of its portfolio over the next five years, up from around 6% currently. The urgency of addressing issues surrounding AI safety has been echoed by various stakeholders, with calls for government action and corporate responsibility regarding the rapid advancement of AI technologies.
Atherton remarked on the need for policy discussions on AI safety, stating, “I really don’t know how you price the end of humanity, except that if it happens, it won’t really matter.”
