TPG CEO Jon Winkelried announced plans to establish an AI taskforce at the firm, signaling a strategic push into artificial intelligence investments. Speaking on Bloomberg Deals with host Dani Burger, Winkelried highlighted software as one of TPG’s key target sectors amid rapid tech advancements.

TPG manages over $300 billion across private equity, credit and other strategies. The firm has long eyed technology plays, but Winkelried’s comments underscore AI’s growing priority. “We’re setting up an AI taskforce,” he said, according to the interview.

Winkelried, who took the CEO role in 2023 after co-founding TPG’s rise from Texas Pacific Group, emphasized the need to handle AI’s complexities. TPG’s portfolio already includes software firms, but the taskforce aims to sharpen deal flow in generative AI, machine learning and related fields. Officials at the firm did not immediately provide further details on the taskforce’s scope or leadership.

The move comes as private equity giants race to capitalize on AI. Rivals like Blackstone and KKR have poured billions into tech, with AI startups drawing record valuations. TPG’s scale—spanning impact investing to buyouts—positions it well for cross-strategy AI bets, Winkelried noted.

In the interview, Winkelried discussed TPG’s broader dealmaking outlook. Fundraising remains strong despite high interest rates, he said. The firm closed a $5.3 billion buyout fund last year and targets expansion in Asia and Europe.

AI’s investment surge follows breakthroughs like OpenAI’s ChatGPT and Google’s Gemini. Venture funding for AI hit $50 billion in 2023, per PitchBook data. Private equity firms now scout later-stage opportunities, blending venture speed with buyout discipline.

Winkelried joined TPG in 1999 and became co-CEO in 2015 alongside Jim Coulter. Under their watch, assets under management ballooned from $20 billion. The AI taskforce fits TPG’s history of sector specialization, from energy to healthcare.

Burger pressed Winkelried on risks, including regulatory scrutiny and talent wars. He acknowledged challenges but stressed TPG’s edge in operational support for portfolio companies. The taskforce will likely scout startups, scale-ups and even public tech firms ripe for privatization.

TPG’s software focus dates back years, with investments in firms like Spotify and Uber before their IPOs. Recent deals include AI-adjacent plays in cybersecurity and data analytics. The taskforce could accelerate this momentum, analysts said.

Wall Street reacted positively to similar announcements from peers. Shares in tech-heavy indices rose after KKR’s AI fund launch. TPG, privately held, does not trade publicly but draws investor interest through limited partner updates.

Winkelried wrapped the interview optimistic. “AI is significant,” he said. TPG’s taskforce positions the firm at the forefront of what could be the decade’s biggest investment wave.