AI-linked stocks have generated $138 billion in gains for 13 public pension funds since 2022, helping them recover from losses tied to the last financial crisis. Despite growing political skepticism toward artificial intelligence, these funds continue to benefit from heavy investments in NVIDIA, Microsoft, and Alphabet. The surge in AI valuations has become a critical financial backstop for underfunded state and municipal retirement systems.
While lawmakers propose stricter regulations and safety audits, divestment could jeopardize the fragile recovery of these portfolios. The tension highlights a growing divide between political rhetoric and the economic realities faced by public institutions relying on tech-driven returns.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing