5-3-2024 (SINGAPORE) Singapore’s Temasek Holdings is reportedly in discussions to invest in OpenAI, the artificial intelligence (AI) company backed by Microsoft. Senior executives from Temasek have engaged in multiple meetings with OpenAI’s CEO, Sam Altman, in recent months, according to sources familiar with the matter, as reported by the Financial Times.
Responding to queries from CNA on Tuesday, Temasek refrained from commenting on market speculation regarding the potential investment.
Initially, Temasek expressed interest in investing in Altman’s venture capital fund, Hydrazine Capital. However, recent talks have extended to include OpenAI, the AI non-profit organization. This development comes after reports last month suggested that Altman was seeking to raise approximately US$5 trillion to US$7 trillion for a network of AI chip factories.
If finalized, this deal with Temasek would mark OpenAI’s first investment since the reports surfaced. AI startups, driven by breakthroughs like OpenAI’s ChatGPT, attracted a significant share of investments in the United States last year, with the sector grabbing attention and funding for AI technology development.
OpenAI’s ChatGPT, launched in late 2022, has been instrumental in drawing attention to generative AI technologies, leading to substantial investments in the necessary chips and servers to support the adoption of such applications.
Among OpenAI’s investors, Microsoft is the largest, with other notable names including Khosla Ventures, Thrive Capital, Andreessen Horowitz, and Sequoia Capital. In a recent deal, OpenAI completed the sale of existing shares in a tender offer, valuing the company at more than US$80 billion, according to sources familiar with the matter.
Temasek, with a portfolio valued at S$382 billion (US$284.21 billion) as of March 31, is an active investor in the technology sector. Its portfolio includes holdings in companies such as Roblox, Tencent, and Alibaba.
