DBS CEO: AI investment risk repricing may tighten financing discipline

The chief executive of DBS Group said on October 12 that the market is reassessing risks related to AI investments, which could push financing toward stricter discipline.

She noted that investors are seeking higher returns while paying attention to deal structures, aiming to ensure that capital deployed into the AI ecosystem generates long-term returns for creditors, bondholders and shareholders. Weaker companies may face credit rating downgrades, but this repricing of risk is “healthy” as the market wants financial commitments to remain sustainable.

Tech giants are pouring billions of dollars into AI projects, while global bond yields have climbed to their highest levels in decades, raising the cost of financing AI infrastructure. PwC projects that Asia’s spending on data centers could reach $8.2 trillion by 2050.

The CEO also said DBS has underwritten about S$25 billion (US$20 billion) of AI deals in 2026, with financing mainly used for hardware, covering semiconductors, memory chips and data centers.