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[DBS Group CEO: The market is re-evaluating the risks of investments related to artificial intelligence construction] On October 12, DBS Group CEO Chen Shushan said that the market is re-evaluating the risks of investments related to artificial intelligence (AI) construction, which may prompt financing in the AI field to be more prudent. "The market has already given the answer," Chen Shushan said on Monday. "This is not a bad thing, because now investors will demand higher returns and will look at the financing structure more carefully. They want to ensure that the current large influx of funds into the entire AI capital expenditure ecosystem can eventually generate some kind of long-term investment return that is enough to bring returns to creditors, bondholders or shareholders." Chen Shushan said that weaker companies may face credit rating downgrades. However, she believes this risk repricing is "healthy" as the market wants to ensure that large-scale capital investment is sustainable. She said DBS has facilitated about S$25 billion (US$20 billion) in AI-related transactions this year, often serving as the lead bank for syndicated loans and retaining only a small portion of the risk exposure itself. Most of these financings are invested in the hardware field, including semiconductors, memory chips and data centers.
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