Temasek investment chief Rohit Sipahimalani said a retreat from artificial intelligence could unsettle markets, though he does not see it happening imminently. He said volatility could emerge in 2027.
Speaking at the Milken Institute Asia Summit in Singapore, Sipahimalani said AI-linked companies had helped keep U.S. shares near record levels despite rising Treasury yields. That resilience at the index level masks weakness among individual stocks: about half of the Russell 3000 was at least 20% below its June highs.
A reassessment of AI investments could be prompted by safety concerns that bring tighter regulation, he said, or by signs that customers are not earning enough from their spending on the technology.
Temasek remains positive on AI over the longer term and continues to increase its investments in the sector. About half of its AI exposure is in publicly traded assets. Sipahimalani said he would ideally raise that share to around 70% to 75%, giving the firm more flexibility to adjust as the industry changes.
Temasek has also invested in private AI-model developers, including OpenAI and Anthropic. Sipahimalani said those holdings cannot be adjusted as readily as public investments. CNBC reported his remarks; the Milken Institute lists him among the speakers at its Singapore summit, running October 7–9.