Gulf sovereign wealth funds are among those hit by the AI sell-off
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.
Key points
- 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.
- Despite the stock market slump, it is unlikely to change how sovereign funds bet on AI.
- “Lower valuations could create opportunities for long-term funds to increase exposure selectively, although this does not imply an imminent rebound.” — Matthew Martin.
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.
Additional details
- 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.
- “We would not expect strategic investors to retreat wholesale from AI,” said Daniel Brett, head of research at GlobalSWF.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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