Temasek Puts AI Ahead of Crypto After FTX Loss

The Singapore state investor is increasing its AI exposure through 2031, while the fallout from FTX and tighter MAS rules keep crypto at arm’s length.

Key Takeaways

• Temasek wants to raise its AI exposure from 6 percent in the first quarter of 2026 to 15 percent in 2031.
• The Singapore state investor has no direct crypto investments and is still cautious after losing $275 million on FTX.
• Temasek is still watching blockchain technology, but regulatory uncertainty and valuations are pushing it to focus on the broader AI stack.

Temasek Holdings is leaning more heavily into AI than crypto when it comes to capital allocation. The Singapore state investor plans to lift its AI exposure from 6 percent in the first quarter of 2026 to 15 percent by 2031. At the same time, it says it has no direct crypto investments and remains wary because of regulatory uncertainty and the fallout from FTX's collapse.

FTX Is Still Hanging Over It

Temasek was forced to book a $275 million (€241 million) write-down in 2022 on its stake in the collapsed crypto exchange FTX. That loss still influences how the firm approaches the crypto market. Nagi Hamiyeh, president of Temasek Global Investments, told CNBC that the company has no direct crypto exposure and cannot say what role crypto will ultimately play in the wider economy, since that will depend in part on future regulation.

Singapore's regulatory backdrop also plays a big role. After FTX and a string of other failures, concerns around consumer protection and sector risk became harder to ignore, prompting the Monetary Authority of Singapore to tighten oversight. That has translated into higher compliance costs and a slower licensing process for crypto firms.

AI Gets the Priority

Hamiyeh said the AI cycle is still in its early stages and could last for decades. Even so, he noted that valuations in some parts of the sector have already run ahead of fundamentals. Temasek is looking beyond models and software, focusing instead on the wider AI stack, including energy, data centers, semiconductors, cloud services, and AI applications.

The company, which has a portfolio of about 518 billion Singapore dollars, is still keeping an eye on blockchain technology. Temasek still sees room for real-world use cases there, even if its direct investment focus is now clearly shifting toward AI. That lines up with a broader trend in which crypto companies are moving more of their infrastructure and capital toward AI services, such as Bitcoin miners betting on AI deals.

Why This Matters

For European crypto readers, the shift is a reminder that institutional capital can move quickly between crypto and AI when regulation and valuations change. Temasek is far from a minor player, so a large state investor staying on the sidelines for now may say something about how professional investors in the region are thinking. It also underscores a simple point: blockchain as a technology does not automatically get the same investment priority as tokens or crypto exchanges.