DBS chief executive Tan Su Shan said the market is repricing the risks tied to financing artificial intelligence, a shift that could push investors toward more sustainable practices and squeeze out weaker players.
Tan's comments, made without a specific timeline, put a spotlight on how lenders and investors are reassessing the flood of capital that has poured into AI ventures.
What the repricing means for AI financing
For years, money flowed into AI projects with little scrutiny. Now, the market is taking a harder look. That change doesn't necessarily mean less money for AI — it means the money comes with more conditions and higher expectations.
Tan described the repricing as a move toward more sustainable investment practices. In plain terms, that could mean fewer blank checks and more proof that an AI business can actually generate returns.
Why weaker players could get squeezed
The repricing may weed out weaker market players. That's a polite way of saying some companies that relied on easy financing won't make the cut. Startups with thin revenue and heavy cash burn are the most exposed.
It's not a crash scenario, at least not yet. But it is a shift in who gets funded and on what terms. Lenders and investors are asking tougher questions about how AI models will make money, not just how impressive they look in a demo.
The view from DBS
DBS is one of Asia's largest banks, and its CEO's remarks carry weight. Tan didn't announce any specific policy change or new lending criteria. Instead, she described a market-wide trend that her bank is watching.
That's significant because banks sit at the center of AI financing. They lend to AI companies, advise on deals, and manage the risk on their books. When a bank CEO says risks are being repriced, it's a signal that credit committees are getting stricter.
What to watch next
There's no deadline attached to this repricing. It's a gradual process, not a single event. But the direction is clear: the era of cheap, unconditional AI money is fading.
The next test will come when the next batch of AI companies seeks funding. If they get lower valuations or tougher terms, that will confirm what Tan is describing. If they don't, the repricing may be slower than expected.
For now, the CEO of DBS has put a name to something many in the market have felt but few have said on the record: AI financing is growing up, and not everyone will like the new rules.
