The Hormuz chokehold affects AI funding too
6 hours ago
- #Sovereign Wealth Funds
- #AI Funding
- #Geopolitical Risk
- Gulf sovereign wealth funds were major AI investors, contributing 18% of non-Big Tech funding and 31% of total AI capital.
- AI funding from Gulf funds surged 700%, from $9.4B in 2023 to nearly $66B in 2025, driven by Saudi Arabia and Abu Dhabi.
- The Strait of Hormuz closure reduced crossings by 90%, hampering Gulf exports and threatening the revenue fueling sovereign wealth funds.
- Funds may prioritize domestic needs over AI investments, as reduced profits could support citizens to uphold monarchies' social contracts.
- Less capital availability could strengthen Big Tech's position by reducing competitors capable of matching their massive AI investments.