Temasek CEO warns AI funding may need broader distribution amid bubble concerns

At the Forbes Global CEO Conference, Temasek Holdings CEO Dilhan Pillay Sandrasegaran warned that the massive influx of money into artificial intelligence is heavily skewed toward hardware layers—energy, chips, infrastructure, models and applications—particularly the chip sector, which is seeing unprecedented profits. He cautioned that inflationary pressures could raise the cost of capital for firms that need financing for AI adoption and operational transformation.

Sandrasegaran also explained the rationale behind ST Telemedia's sale of its 82% stake in ST Telemedia Global Data Centres to KKR and Singtel for S$6.6 billion, citing risk-adjusted considerations. Ray Dalio, sharing the stage, described one outlet AI investment climate as a "classic bubble" vulnerable to higher interest rates. DBS Group CEO Tan Su Shan added that companies should create safe environments for AI experimentation, enforce robust data governance, and focus on customer-centric culture while protecting employees during job shifts. The discussion underscored the tension between rapid AI capital deployment and the need for sustainable, broader-based investment.