Temasek CIO Flags AI Investment Reversal as Top Market Risk
Rohit Sipahimalani told the Milken Institute Asia Summit that an AI investment flow reversal could hit markets around 2027, though he sees no imminent shock.
Temasek Chief Investment Officer Rohit Sipahimalani said at the Milken Institute Asia Summit in Singapore that a reversal in AI investment flows is the biggest risk to the market, according to digitaltoday.co.kr. He said a shock from such a reversal is possible in 2027, though he does not see one as imminent.
Sipahimalani pointed to market breadth as a sign of strain, saying roughly half of Russell 3000 constituents are down more than 20% from their June peak.
Despite that warning, he said Temasek is still expanding its AI investments. About half of the firm's AI exposure currently sits in listed assets, and he said the ideal level would be 70-75%.
He said Temasek invests in private AI model developers including OpenAI and Anthropic.
Sipahimalani also credited earnings momentum at AI-related companies for the S&P 500 holding record highs even as Treasury yields and borrowing costs rose.
Quick answers
What did Temasek's CIO say is the biggest market risk?
Rohit Sipahimalani said a reversal in AI investment flows is the biggest risk to the market, with a possible shock in 2027.
How much of Temasek's AI exposure is in listed assets?
About half is currently in listed assets, with an ideal target of 70-75%.
Which private AI companies does Temasek invest in?
Sipahimalani said Temasek invests in private AI model developers including OpenAI and Anthropic.