Sovereign Wealth Funds Pivot to AI and National Priorities

A study by IE University analysing sovereign wealth funds (SWFs) that manage more than US$15 trillion found a sharp shift toward investments that serve national strategic goals, especially in artificial intelligence (AI) and semiconductor sectors. While the number of direct deals fell 17 % to 391 transactions, the total value of SWF‑backed investments rose 91 % to US$404 billion, with AI‑related deals accounting for about one‑third of the value.

The United States attracted the largest share of AI investment, with US‑based SWFs committing US$220.4 billion. Middle‑East funds from Abu Dhabi, Qatar and Oman, as well as Singapore’s Temasek, were also active, with Temasek leading in deal volume (71 transactions). Norway and other energy‑rich nations remain major investors, though many SWF allocations remain undisclosed, representing “the tip of the iceberg.”

Javier Capapé, editor of the report and director of SWF research at IE University, said SWFs are now “increasingly used by governments to implement national strategies and build stronger positions in global value chains.” The study suggests non‑market factors are gaining importance as the world moves into a new paradigm where sovereign capital is a key tool of geopolitical influence.