‘Phenomenal’ amount of capital going into AI could be more spread out: Temasek CEO
Temasek's Dilhan Pillay Sandrasegaran and DBS' Tan Su Shan spoke at the Forbes Global CEO Conference, where American billionaire investor Ray Dalio also warned of a "classic bubble".
Temasek Holdings CEO Dilhan Pillay Sandrasegaran stated that the unprecedented influx of capital into artificial intelligence (AI) could be better distributed, particularly in areas like AI adoption. At the Forbes Global CEO Conference, Sandrasegaran highlighted that a significant portion of the funds are currently directed towards AI infrastructure, chips, and models. He expressed concerns that the rising cost of capital due to inflationary pressures from AI investment might impact AI adoption in the future.
Additionally, Sandrasegaran discussed the recent sale of ST Telemedia's 82% stake in ST Telemedia Global Data Centres to KKR and Singtel for S$6.6 billion. He questioned the rationale behind selling a data centre operator at a time when AI investments are surging, noting that the subsidiary benefited from Temasek's triple-A rating to secure favorable credit rates.
He emphasized the need to consider the long-term implications of ownership, as the risk tolerance of owners differs from that of investors, particularly when it comes to adapting to new technologies and environments.
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