Temasek Backs OpenAI Investor’s New $336M Tech Fund
Alpha Intelligence Capital (AIC), renowned for its investment in groundbreaking artificial intelligence (AI) enterprises, including the notable OpenAI, is in the midst of raising a substantial US$250 million (S$336.8 million) for its new fund. This ambitious effort has succeeded in drawing attention—and substantial backing—from prestigious government-owned entities in France and Singapore, marking a significant moment in the venture capital landscape for AI technologies.
As confirmed by AIC partners, Arnaud Barthelemy and Terry Chou, the firm has already secured US$160 million towards this second fund. A key milestone is set for September, by when the fund is expected to reach its final close. Among the notable contributors are France’s Bpifrance, Taiwan’s CDIB Capital Group, and an undisclosed state-run fund from Singapore. This diverse roster of backers underscores the global belief in the potential of AI to reshape industries and societies.
This isn’t the fund’s mere beginning stages of investment, for it has notably placed early bets on some of the most innovative names in the AI domain, including ChatGPT creator OpenAI and the computing architecture innovator FlexAI. Based in Luxembourg, AIC is driven by the anticipation that both companies and consumers across the globe will increasingly incorporate AI technologies into their operations and daily lives. This prediction stems from the burgeoning popularity of AI-powered solutions like ChatGPT, which have captured the world’s imagination.
An individual familiar with the dealings has revealed that Singapore’s sovereign wealth fund, Temasek Holdings, stands among the investors in this compelling new venture by AIC. While AIC partners have refrained from confirming this directly, they disclosed ongoing discussions with two additional sovereign investors and a global backer, poised to seal the fund soon.
AIC’s investment portfolio is impressive, including previous engagements with Chinese AI titan SenseTime Group Inc. Moreover, the firm’s first fund boasted involvement with AI startups that went on to be acquired by industry giants such as Apple Inc., International Business Machines Corp., and BioNTech SE—a testament to AIC’s strategic foresight and investment acumen, according to Chou, who oversees AIC’s Asia operations from Singapore.
The investment landscape is increasingly vibrant, with venture capital firms around the world amassing billions to support technologies like generative AI, the engine behind innovations like ChatGPT, Google’s Gemini, and Microsoft Corp.’s Copilot. The consensus among investors is clear: AI-powered tools are set to revolutionize traditional business models and offer solutions to pressing technological challenges.
Nevertheless, this surging interest in AI highlights certain trends, such as inflated valuations for startups whose strategies for profitability remain uncertain. Barthelemy, AIC’s chief operating officer, remarked, “Our investors are convinced that AI will profoundly impact their respective businesses across all sectors and that this is just the beginning,” offering a staunch defense of their investment thesis amidst the AI hype.
The fund aims to cast a wide net across the AI ecosystem, targeting companies specializing in hardware, applications, cybersecurity, and gaming. Chou elucidated that their investment focus will remain global, with the notable exception of China, stressing the fund’s inclusive approach toward identifying and nurturing AI innovation wherever it occurs.
As the global race towards AI dominance quickens, ventures like AIC’s new fund not only symbolize the financial sector’s bullish outlook on AI but also signify the strategic role sovereign and institutional investors play in shaping the future of technology. The journey of AIC, backed by illustrious entities and led by a vision of AI’s transformative potential, vividly exemplifies the exciting confluence of venture capital and cutting-edge innovation in the modern era.
