Temasek Rules Out Crypto Investments, Doubles Down on AI Instead

Singapore’s state owned investment firm Temasek Holdings says it will prioritize artificial intelligence over cryptocurrency, pointing to regulatory uncertainty and a costly lesson from the FTX collapse.

AI Exposure Set to More Than Double

Temasek, which manages a portfolio worth around 518 billion Singapore dollars (about $400 billion), plans to grow its AI holdings from 6% currently to 15% by 2031. Nagi Hamiyeh, president of Temasek Global Investments, told CNBC on Wednesday that the AI investment cycle is still in its early stages and will run for decades, though he warned that valuations in some corners of the industry have outpaced fundamentals.

FTX Losses Still Cast a Shadow

The firm wrote off $275 million after the 2022 collapse of crypto exchange FTX, a loss that continues to shape its approach to digital assets. That failure, along with others in the sector, exposed gaps in consumer protection in Singapore and pushed the Monetary Authority of Singapore toward tighter oversight, raising compliance costs and slowing down licensing.

No Direct Crypto Holdings, But Blockchain Still on Radar

“We don’t have directly any investment in crypto,” Hamiyeh said, adding that future regulation will shape whatever role crypto ends up playing in the broader economy. He said Temasek still watches blockchain technology for its potential to reshape the real economy, even while its focus stays on AI adoption. “Not every situation needs frontier models,” he said, stressing that success depends on which companies build a real edge using AI.