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Singapore state investor Temasek plans to invest up to $30 billion in the U.S. over the next five years, with a significant focus on sectors such as healthcare, financial services, and technology. Notably, the investment will heavily target AI-related areas, including data centers, semiconductors, and battery storage.

"It's an incredibly deep and broad capital market in the U.S.," said Jane Atherton, Temasek's head of North America. "The U.S. is really at the forefront of everything that's happening from the AI perspective."

The U.S. economy grew faster than expected in the second quarter, continuing to outperform its global peers. Despite recent turbulence, the S&P 500 is up 14.5% this year, driven in part by excitement over artificial intelligence.

In contrast, China reported weaker-than-expected growth earlier this month and cut major short- and long-term interest rates to boost its economy.

About 22% of Temasek's $288 billion portfolio, or $63 billion, is invested in the Americas, compared to 19% in China. For the first time in a decade, its exposure to the Americas surpassed that of China in the last financial year. 

China and the US are vying to dominate semiconductor manufacturing because of its link to artificial intelligence and other aspects of the digital economy. The US is trying to limit the rise of its Asian rival by deploying export controls and tariffs, and even considering a rule that would curb China’s access to advanced semiconductor technology.

Earlier this month, Temasek stated that profits from investments in the U.S. and India were helping cushion underperformance in China. The firm is taking a cautious approach to China amid trade tensions. "Geopolitics always plays a role," Atherton said, noting that China has underperformed the U.S. over the past three years.

For the US, she said Temasek is looking to invest in AI-related firms, as well as semiconductor and infrastructure plays such as data centres and the companies that power them. 

Editor：Lulu

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