Singapore's sovereign wealth fund GIC stated that Chinese AI models DeepSeek and Kimi are driving down global AI application costs and intensifying model competition. GIC Group CIO Bryan Yeo told the Financial Times that the performance gap between Chinese open-weight models and US closed-source frontier models is narrowing, which may force global AI companies to lower prices. GIC's latest annual report showed that as of March, its 20-year inflation-adjusted annualized return fell from 3.8% to 3.4%, the lowest level since 2020, as the fund continues investing billions in AI infrastructure while maintaining caution about overvaluation risks in the technology sector.
Chinese AI Models Drive Cost Competition and Enterprise Adoption
Bryan Yeo stated in the Financial Times interview that as more high-quality, low-cost models enter the market, AI usage scenarios will experience exponential growth. The narrowing performance gap between Chinese open-weight models and US closed-source frontier models may compel global AI companies to reduce pricing and accelerate enterprise adoption. GIC has designated AI as a core investment direction but remains vigilant about risks associated with excessive valuations and technology hype.
GIC Invests Billions in AI Infrastructure and Anthropic Funding
GIC has invested billions of dollars in AI infrastructure, model developers, and AI application companies over the past several years. In February, GIC led Anthropic's $30 billion funding round. When asked whether Chinese low-cost models threaten the high valuations of Anthropic and OpenAI, Yeo did not respond directly but expressed optimism about the long-term prospects of Chinese AI companies. He noted that when investing in startups, GIC rigorously examines their research and development capabilities and model iteration speed.
GIC Reports 20-Year Return Decline and Regional Allocation Shift
GIC's latest annual report showed that as of March, the investment portfolio's 20-year inflation-adjusted annualized return decreased from 3.8% to 3.4%, the lowest level since 2020. In terms of asset allocation, the Americas proportion increased from 44% in 2024 to 53%, while the Asia-Pacific region fell from 28% to 22%.
FAQ
What did GIC say about Chinese AI models?
GIC stated that Chinese AI models such as DeepSeek and Kimi will intensify global model competition and significantly reduce AI application costs, driving more enterprises and industries to adopt related technologies. GIC Group CIO Bryan Yeo told the Financial Times that the performance gap between Chinese open-weight models and US closed-source frontier models is narrowing.
How much did GIC's 20-year return decline?
GIC's 20-year inflation-adjusted annualized return fell from 3.8% to 3.4% as of March, marking the lowest level since 2020 according to the fund's latest annual report.
What is GIC's regional asset allocation shift?
GIC's asset allocation showed the Americas proportion rising from 44% in 2024 to 53%, while the Asia-Pacific region decreased from 28% to 22% according to the latest annual report.
