Singapore sovereign wealth fund GIC: Chinese AI will lower global AI costs and accelerate enterprise adoption.

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Singapore's sovereign wealth fund GIC stated that the rise of Chinese AI models will significantly reduce the global cost of applying AI technology.

On July 23, Bryan Yeo, Chief Investment Officer of Singapore's sovereign wealth fund GIC, said in an interview with the Financial Times that the emergence of Chinese large language models such as DeepSeek and Kimi will drive down costs, thereby accelerating the broad adoption of AI across more enterprises and industries.

Bryan Yeo characterized this trend as a positive contribution to the global AI ecosystem. He emphasized:

Use cases will only grow exponentially.

Both OpenAI and Anthropic have achieved valuations close to $1 trillion this year, based on their ability to continually develop top closed-source models. Analysis suggests that if low-cost, open-source Chinese models become widely adopted, the rationality behind these high valuations will face scrutiny.

GIC Bets on Anthropic, Remains Bullish on Chinese AI

GIC has placed AI at the core of its investment strategy, investing billions of dollars in the field over the past few years.

In February this year, GIC led Anthropic's funding round, which reached as high as $30 billion. If the company behind Claude completes its planned IPO within this year, GIC stands to gain substantial returns.

However, when Bryan Yeo was pressed on whether Chinese open-source models would threaten American closed, cutting-edge models such as Anthropic and OpenAI, he deliberately avoided giving a direct answer.

Meanwhile, GIC expressed a positive outlook for the growth prospects of Chinese AI companies, but remains cautious about investing in startups.

Bryan Yeo pointed out that GIC needs to "scrutinize more strictly the actual capabilities of these startups regarding R&D investment and model iteration."

Annual Returns Hit Recent Lows, GIC Adjusts Performance Assessment Framework

GIC released its latest annual report as of the end of March this year on Friday.

The report showed that the annualized return rate, adjusted for inflation, was 3.4% over the past two decades, the lowest since 2020. GIC does not disclose annual returns or the total size of its investment portfolio but is widely regarded as one of the world's largest sovereign investment institutions.

In terms of the performance assessment framework, GIC has adjusted its reporting methodology this year.

Previously, GIC used a reference portfolio built according to the Singapore government's risk preferences as a benchmark but stated that the reference portfolio should not be used as a standard for evaluating its returns.

Starting next year, GIC will publish the performance of a new strategic portfolio constructed based on government risk preference and long-term return expectations and will use this as its official performance benchmark.

From the perspective of asset allocation trends, GIC has been continuously increasing its investment in the Americas market. Since 2024, GIC's allocation to the Americas has risen from 44% to 53%, while its allocation to the Asia-Pacific region has fallen from 28% to 22%.

Additionally, GIC stated plans to deploy $30 billion into hedge funds over the next three years. Over the past decade, GIC's investment in hedge funds has tripled, although no specific exposure details have been disclosed at present.

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