Gulf Sovereign Wealth Funds' AI Portfolios Shrink by $30.5 Billion Since June
Data from GlobalSWF shows Gulf sovereign wealth funds have seen $30.5 billion in losses in their listed AI portfolios since late June, with Mubadala and PIF hit hardest.
According to consultancy GlobalSWF, sovereign wealth funds and public pension investors globally hold about $335.5 billion of exposure to AI companies. Since the end of June, these funds' listed portfolios have slumped by $30.5 billion amid the broader AI sell-off.
Gulf sovereign wealth funds have been among the biggest losers. Abu Dhabi’s Mubadala Investment Company saw its AI portfolio shrink by an estimated $17.5 billion, largely due to a more than 50% slump in chipmaker GlobalFoundries stock. Saudi Arabia’s Public Investment Fund (PIF) is estimated to have seen its AI exposure fall in value by $5.64 billion, mostly attributed to its SpaceX holding.
Despite the stock market slump, it is unlikely to change how sovereign funds bet on AI. “We would not expect strategic investors to retreat wholesale from AI,” said Daniel Brett, head of research at GlobalSWF. “Lower valuations could create opportunities for long-term funds to increase exposure selectively, although this does not imply an imminent rebound.”