Temasek Ditches Crypto Amid Regulatory Uncertainty, Focuses on AI

Temasek Holdings, Singapore's state investment company, has decided to steer clear of direct investments in cryptocurrency. This decision comes four years after it suffered a substantial loss of $275 million on its investment in FTX, which later went bankrupt. According to Nagi Hamiyeh, president of Temasek Global Investments, the company is hesitant due to regulatory uncertainty in the sector.

Instead, Temasek focuses on blockchain and its infrastructure, with an eye towards its potential benefits for the real economy. Hamiyeh emphasized that the company cannot predict what role cryptocurrency will play in the future, given the various regulations that may come into effect.

Hamiyeh also shared his views on other areas of investment, including artificial intelligence (AI). He stated that he would bet on AI adoption and building commercial ecosystems around it, rather than pushing for frontier models. Temasek aims to increase its exposure to AI from 6% of its portfolio in the latest fiscal year ended March to 15% by 2031.

The company has invested significantly in Europe over the past two years, with approximately $14 billion allocated to the region. Hamiyeh pointed out that Europe's luxury brands, energy transition efforts, and family-owned industrials offer opportunities for long-term growth. However, he noted that the Middle East's transformation story remains intact but is yet to fully play out due to ongoing conflict.