Sovereign wealth funds shift capital to US AI sector amid China decline

Global sovereign wealth funds are increasingly shifting capital toward North America, driven largely by the artificial intelligence boom. According to data from Global SWF, investment in North America by these funds is projected to reach $154 billion in 2025, accounting for half of their total investment. The proportion of capital allocated to the United States is expected to rise from approximately 20% to 30% since 2018 to as much as 52% in 2025, potentially reaching 58% in the first half of 2026.

Conversely, investment in emerging economies such as China and India has seen a significant decline. Investment in these markets fell to $50 billion in 2025, a seven-year low representing less than 20% of total allocations. In China, foreign investment has dropped sharply from $344.1 billion in 2021 to $42.6 billion in 2024, with a slight recovery to $80 billion in 2025. This trend is attributed to the prolonged downturn in China's real estate market and increased regulatory scrutiny of foreign capital.