Singapore’s Temasek Holdings Explores Investment in OpenAI

According to reports from the Financial Times on Tuesday, Temasek Holdings, Singapore’s prominent investment firm, is discussing investing in OpenAI, a leading artificial intelligence company backed by Microsoft. 

Citing sources familiar with the matter, the Financial Times revealed that senior executives from Temasek have engaged in multiple discussions with OpenAI’s CEO, Sam Altman, in recent months.

Initial Interest in Venture Capital Fund:

Initially, Temasek’s interest was directed towards investing in Altman’s venture capital fund, Hydrazine Capital. However, recent talks have shifted to potentially investing in OpenAI, the renowned AI non-profit organization, as per sources cited by the Financial Times.

Neither OpenAI nor Temasek immediately responded to requests for comments from Reuters regarding the reported discussions. Temasek declined to comment on the matter, as stated in the report.

Significance of the Deal:

This potential investment marks a significant development for OpenAI, particularly following recent reports suggesting that CEO Sam Altman sought to raise substantial funds, estimated between $5 trillion and $7 trillion, to establish an AI chip factory network.

The report underscores the growing interest in AI startups, with investments in the sector surging. 

OpenAI’s ChatGPT has been particularly influential in driving investment, highlighting the increasing focus on developing and adopting AI technology.

Investment Landscape and OpenAI’s Investors:

OpenAI’s investors include names such as Khosla Ventures, Thrive Capital, Andreessen Horowitz, and Sequoia Capital, in addition to Microsoft, which is its largest investor.

Previous reports have indicated that OpenAI completed a deal, valuing the company at $80 billion. The New York Times reported that this valuation was based on a tender offer involving the sale of existing shares.

Temasek’s Tech Investment Portfolio:

Temasek’s interest in OpenAI aligns with its active investment strategy in the technology sector. 

With a diverse portfolio valued at S$382 billion ($284.21 billion) as of March 31, Temasek has investments in prominent tech companies such as Roblox, Tencent, and Alibaba, among others.