When one of Asia’s most powerful sovereign wealth funds starts waving caution flags about US spending, the rest of the market tends to pay attention. Rohit Sipahimalani, Chief Investment Officer of Temasek International, used a July 8 interview to warn that surging US capital expenditure, particularly in artificial intelligence infrastructure, could pose meaningful risks for global markets.
The timing was not accidental. Sipahimalani’s remarks arrived alongside the release of Temasek’s fiscal year 2026 results, which showed the fund’s net portfolio value hitting a record S$518 billion (roughly US$401 billion) as of March 31, 2026. That represents a year-on-year increase of S$49 billion, or 10.5%, up from S$469 billion.
The capex problem, explained
Sipahimalani’s concern centers on whether the current wave of US capital expenditure, heavily concentrated in AI-related infrastructure, can generate returns that justify the investment. If companies are pouring billions into AI infrastructure and the revenue from AI products doesn’t materialize fast enough, you get an overhang. Asset valuations that were priced for perfection suddenly look expensive.
Record returns, cautious posture
