Singapore’s GIC, one of the world’s largest institutional investors, has advised “doubling down” on Big Tech rather than overvalued start-ups in the booming generative artificial intelligence sector. 

Lim Chow Kiat, chief executive of the $700bn sovereign wealth fund, said tech giants, including Microsoft, Alphabet and Meta, had begun capturing “a lot of value” in the transformative technology with their existing customers.  

“Customers are paying for [their services] already. So, actually, that is quite a good place for investors to double down on,” he said in an interview with the Financial Times. Valuations of start-ups with AI business models were “too high”, he added. “We need to be careful not to get sucked into the hype. But it is more important not to lose interest.”