Sovereign wealth funds, including some of those in the Gulf, are among the big losers from the AI sell-off, with their listed portfolios slumping $30.5 billion since the end of June. Globally, sovereign wealth funds and public pension investors hold about $335.5 billion of exposure to AI companies, according to consultancy GlobalSWF. Gulf funds have been a big part of that, both domestically and around the world, backing AI firms in private funding rounds and as they list on public markets.
Among those with some of the highest disclosed exposures is Abu Dhabi’s Mubadala, which may have seen its portfolio shrink by $17.5 billion, mostly due to a more than 50% slump in chipmaker GlobalFoundries stock. Saudi Arabia’s 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.”
— Matthew Martin
