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The world's biggest stock investor says if you don't see opportunities in AI, then you are a 'complete moron'

Aug 16, 2023 - markets.businessinsider.com
Norway's sovereign wealth fund, the world's largest stock investor, has seen significant gains this year due to its investments in artificial intelligence (AI). The fund, valued at $1.4 trillion, has returned 10% year to date, equating to about $143 billion. This success has been largely driven by US tech giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, which collectively accounted for a third of the fund's recent gains and 12% of its holdings.

The fund's CEO, Nicolai Tangen, has expressed strong belief in the potential of AI, and has stated that the fund is increasing its engagement with companies in its portfolio on AI to ensure board-level accountability. However, he also warned of the challenges of regulating AI due to the US-China rivalry and the critical role of the technology in various sectors. Despite the fund's success with tech stocks, it has recently reduced its overweight position in top tech companies, with tech holdings now representing about 12% of the fund's total value.

Key takeaways:

  • Norway's sovereign wealth fund, the world's largest stock investor, has made significant gains this year due to its investments in artificial intelligence (AI) and US tech stocks.
  • The fund's CEO, Nicolai Tangen, has stated that those who do not see the opportunities with AI are "complete morons" and that the fund is increasing its engagement with companies in its portfolio on AI to ensure board-level accountability.
  • Despite the success, the fund has recently reduced its overweight position in top tech companies, with tech holdings representing about 12% of the fund's total value at the end of 2022.
  • Tangen has warned that regulating AI will be challenging due to the US-China rivalry and the technology's critical role in various sectors, including the weapons race, medical race, self-driving race, and financial race.
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