Yet the firm is betting big on artificial intelligence and European luxury brands instead.
Temasek president Nagi Hamiyeh said, "We don't have directly any, any investment in crypto." The firm stays away because of regulatory uncertainty and the sting of the FTX loss. Then-deputy prime minister Lawrence Wong called that loss "disappointing" and damaging for Singapore's reputation.
But Temasek isn't ignoring the technology behind crypto entirely. It prefers blockchain infrastructure and real-world applications over digital coins. Hamiyeh said, "I can't forecast what happens in the future, and the role that crypto is going to play in the main economy, depending on the different regulations that might happen."
The firm is betting on commercial adoption and physical AI - things like automation, robotics, and industrial process optimization.
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Rather than focusing on frontier models, Hamiyeh said he would invest in AI adoption and the development of a commercial ecosystem around it. "Not every situation needs frontier models. It's all about the applications, and it's all about the companies that embrace AI and build a moat." He added that the cycle for AI investment is in its infancy and will continue for many years, even though valuations in certain segments have moved ahead of underlying fundamentals. Temasek's investments cover the entire AI value chain, encompassing energy infrastructure and data centers. He said that long-term agreements with highly creditworthy partners keep risk "very, very minimal."
Looking past macro and political noise, Hamiyeh cited Europe's strengths in top-tier luxury goods, consumer brands, renewable energy, and family-controlled industrial companies as areas where the continent has a "right to win."
On defense, Temasek adopts a pragmatic stance and does not categorically include or exclude the sector. The firm primarily focuses on technologies with both civilian and military applications. Hamiyeh stated, "Biological and chemical weapons are categorically off-limits."
Temasek's sole involvement in that sector is through ST Engineering. Hamiyeh said, "We look at every investment on a stand-alone basis," adding that the firm considers governance standards and each investment's potential role in any conflict.
That strategic allocation shows Temasek's preference for tangible long-term trends over speculative assets. Its $14 billion European bet focuses on luxury and energy transition, while the AI ramp-up targets automation and data centers. The firm's continued avoidance of crypto, despite interest in blockchain, highlights a disciplined approach following the $275 million FTX write-off.
The FTX loss in 2022 triggered internal reviews and a reputational setback, as acknowledged by then-deputy prime minister Lawrence Wong. Since then, Temasek has maintained a strict no-crypto policy, preferring blockchain infrastructure projects with real-world applications. This cautious pivot toward AI and European industrials reflects a longer-term strategy anchored in structural trends rather than speculative waves.
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