Norway’s Wealth Fund Warns of AI Bubble and Geopolitical Risks

The convergence of an AI bubble and geopolitical risks pose the greatest threat to global markets, according to Nicolai Tangen, chief executive officer of Norway’s $2.1 trillion sovereign wealth fund.

The agency identified an AI bubble as a major risk scenario, potentially costing the world’s largest wealth fund 35% of its value. Geopolitical risk, including global investment restrictions and severe tariffs, could wipe out as much as 37% of the fund’s value in a worst-case scenario.