Global Market: Sovereign wealth funds pivot to strategic investments as AI takes centre stage

Sovereign wealth funds managing over 15 trillion dollars in assets are increasingly channeling capital into AI and semiconductor industries, viewing them as strategic assets. The number of direct deals fell 17% to 391 transactions, but total deal value surged 91% to 404 billion dollars, reflecting a preference for fewer, larger bets. AI-related transactions accounted for about one-third of the capital tracked, with the US attracting 220.4 billion dollars and remaining the top destination, while 12 new sovereign wealth funds were launched globally.