Promising opportunities

In an increasingly complex investment landscape, we see opportunities in AI, core-plus infrastructure, and private credit.

AI’s value is found in scaled adoption

Long-term value from AI will come not only from advances in models, but in how AI is adopted and applied at scale, across businesses, sectors and ecosystems

An opportunity that spans across sectors, beyond model companies

Unlike previous technology waves, AI creates opportunities across a broad ecosystem, from frontier model developers to infrastructure providers, software companies, and businesses successfully applying AI.

Positioned early, building for the long-term

AI is a pivotal next phase of digitisation, one of four structural trends that have guided our investment strategy since 2016. As the technology evolved from a nascent area of innovation into a foundational capability, we recognised the importance of developing our own capabilities to better understand and harness its potential.

In 2019, we established our AI Pod, a multidisciplinary team to build our expertise in this area. Through our work across the institution and portfolio, we have deepened our understanding of both the long-term opportunities and practical considerations of the technology. These experiences helped shape our views on AI’s long-term value.

Temasek's conviction in AI is shaped not only by advances at the frontier, but by how quickly those capabilities are adopted and applied across the economy. While innovation remains important, long-term value creation likely depends on how AI is deployed at scale. This creates opportunities not only for AI developers, but also for the companies enabling and applying the technology

Temasek’s AI Strategy

Our approach to harnessing AI for long-term value is organised around four mutually reinforcing pillars:

AI-Enabling Ourselves

Embedding AI into how we invest and operate to augment decision-making, sharpen our workflows, and enhance productivity.

Scaling Our AI Exposure

Growing AI-related exposure across the value chain, from energy infrastructure and chips to cloud services, models, and applications.

AI-Proofing Our Portfolio

Engaging portfolio companies on AI adoption, helping them respond to new risks, opportunities, and operating realities.

Supporting AI Diffusion

Supporting wider AI adoption by building capabilities, convening expertise, and encouraging responsible practices across the ecosystem.

AI-Enabling ourselves, to augment decision-making

Temasek is increasingly leveraging AI to manage a growing and increasingly complex portfolio, while strengthening the consistency and quality of decision-making.

Our approach is human-led: AI operates within our governance framework, and human judgement remains central to every outcome. As we move beyond workflow efficiency, we are also deploying more advanced AI solutions to augment specialised work across the institution.

For investment teams, AI can help surface insights, identify potential blind spots and strengthen decision-making, supporting a more consistent and informed investment process. Within our own institution, we also focus on making AI useful and practical, supported by customised tools, stronger data foundations, and a firm-wide Digital Fluency programme.

AI-Proofing our portfolio for resilience

We help position our portfolio for an AI-driven world, with the aim of delivering sustainable returns over the long term.

Temasek Portfolio Companies (TPCs)

Engaging boards and management teams on their AI transformation journeys.
Connecting companies to networks, partners, and specialist capabilities.
Working with our TPCs to build AI readiness across their organisations and provide them with differentiated access to specialist capabilities and frontier AI ecosystems. This includes co-developing a Workforce AI Fluency Playbook with our TPCs, which will serve as a practical guide for developing an AI-first mindset across the workforce.

Global Direct Investments (GDIs)

Continually assessing evolving AI-related risks and opportunities.
Acting to mitigate risks and capture emerging upside, helping companies scale AI capabilities and accelerate value creation.

Scaling Our AI Exposure in a holistic and systematic manner

We aim to increase our AI related exposure up to 15% by March 2031, excluding AI-related exposure of our TPCs. This exposure is anchored around four key investment themes, each with their own return profile:

Scaled AI Winners

Large, vertically integrated companies and established segment leaders that are well positioned to deliver resilient, compounding returns.

AI Innovators

Emerging AI-native companies with the potential to disrupt and reshape markets, offering high-growth opportunities alongside commensurate risks.

AI Factories

Core-plus infrastructure, such as data centres, and energy infrastructure, which enables the broader AI ecosystem and can provide stable, lower-risk returns.

AI Transformation

Incumbents leveraging AI-enabled transformation to drive product innovation, enhance profitability, and reinforce their competitive advantages.

Our investments span the AI value chain

Energy infrastructure

Semiconductor chips

Cloud services providers

Foundation models

AI applications
and software infrastructure

We are also invested in vertically integrated mega-caps, which are large companies that have expertise in more than one focus.

Our flexibility across public and private markets, and direct and indirect investments, allows us to participate across opportunities at different stages of maturity while remaining disciplined and selective.

Given the uncertainty around where long-term value will ultimately emerge, a diversified, yet selective approach is important. As we pursue these opportunities, we remain disciplined on entry price and underwriting.

Advancing AI diffusion across our portfolio

We are committed to accelerating AI diffusion across our portfolio and the wider network, helping our TPCs become fast adopters of AI while deepening AI fluency, access, and capability across Singapore, in partnership with the public sector and other stakeholders.

The greatest value from AI will come not only from advances in models, but from how quickly organisations can adopt, deploy, and scale these capabilities in practice. Fast and broad adoption across the ecosystem is a prerequisite for unlocking AI’s full potential for long-term value creation.

Accelerating AI adoption across the portfolio

Enabling TPCs as Fast Adopters.

Providing TPCs access to specialist expertise and capabilities to support AI transformation.

Building shared AI knowledge and capabilities

Convening Leaders and Experts.

Facilitating Access to Frontier Technologies and Partners.

Championing Responsible AI (RAI) as a foundation for diffusion

Engaging portfolio companies on RAI topics such as cybersecurity, governance, and workforce readiness.

In 2023, established Resaro, an AI assurance firm.

Securing Long-term Business and Workforce Resilience.

Convening Leaders and Experts:

To deepen the understanding of how AI can be integrated across the Temasek ecosystem, our leaders, together with leaders from our portfolio companies and others, participated in two AI-focused learning programmes:

AI Leadership Programme in partnership with the Stanford University Graduate School of Business which provided a grounded understanding of the AI landscape, focusing on key developments, business implications, and the ways in which organisations are deploying AI in practice.
Executive study trip to Shanghai and Hangzhou examining the rapid evolution of China’s AI ecosystem from frontier models and infrastructure to industrial applications

Supporting AI diffusion also involves strengthening capability across the wider ecosystem. Through the Temasek Fellowship, Professor Henrik Christensen engaged companies, researchers and educational institutions to share insights, build confidence in AI adoption, and translate frontier thinking into practical applications.

Patient capital for a fast-moving theme

AI will keep evolving, and so will our approach, as we continue to scale our exposure, underpinned by the conviction that AI will be a key driver of innovation and returns over the long-term.

The real test will be adoption: how companies build capability and turn new tools into measurable value.

That takes time. As a long-term investor with patient, flexible capital, we can stay engaged through the implementation years, supporting a more resilient portfolio while helping businesses and ecosystems prepare for the next phase of AI adoption.

That is how we seek to do well, do right, and do good — always doing things today with tomorrow in mind, So Every Generation Prospers.

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Positioned early, building for the long-term