Singtel launches US$250M AI growth fund

[SINGAPORE] Singtel’s wholly owned corporate venture capital arm has launched a new US$250 million artificial intelligence (AI) growth fund to invest in high-growth AI startups globally and accelerate applied AI adoption across the group.

Singtel Innov8 announced the launch on Friday (Mar 13), saying that its AI Growth Fund will focus on growth-stage AI companies in areas critical to Singtel’s future. These will include network operations, cybersecurity and IT automation, among others.

Edgar Hardless, chief executive of Singtel Innov8, said: “By investing with clear deployment pathways, we accelerate applied AI adoption for enterprises, governments and consumers across the region.”

Singtel said the fund aims to create a pipeline for deployable AI solutions across its operating companies: Singtel and Optus will test the startups’ AI solutions internally; Digital InfraCo will provide the computing power to run them; and NCS will integrate and operationalise these solutions for enterprises and governments.

In addition to its existing US$250 million evergreen fund, this brings Innov8’s total managed capital to US$500 million.

Singtel said that the AI Growth Fund complements Digital InfraCo’s recently announced Centre of Excellence for Applied AI with Nvidia, which will begin operations in about three months. The centre will provide enterprise-grade infrastructure, while Innov8’s role is to find and fund promising AI startups.

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Innov8’s investments have generated an internal rate of return of 26 per cent since Singtel’s strategic reset in 2021, added the company. Innov8 has over 120 investments globally, including Carro, Endowus and Shopback.

“Unlocking AI’s full potential requires more than capital,” said Hardless. “It needs a vibrant, collaborative ecosystem where innovation can truly thrive.”