A new IE University study reveals sovereign funds are redirecting capital toward strategic domestic sectors, with AI attracting a growing share of large-ticket deals.
Shifts in geopolitical alliances are driving sovereign funds to increasingly focus on strategic national priorities – from reliable infrastructure to key domestic industries – alongside the expected returns on investments, according to a study released on Friday.
The study, conducted by IE University in Spain, found that sovereign funds managing more than $15 trillion are playing an increasingly significant role in financing artificial intelligence, at a time when governments are viewing AI and semiconductors as strategic assets.
This fragmentary world has had an impact.
– Javier Capapé
The study also indicates a shift toward signing larger-scale deals. If the number of direct investments declined by 17% from the previous reporting period and stood at 391 transactions, total expenditures rose by 91% to reach $404 billion compared with the university’s 2024 data.
According to Capapé, investments in AI-related projects accounted for about a third of the expenditures recorded in the study, attracting capital from sovereign investors with long-term investment horizons, including Stargate, OpenAI, and Databricks.
Among recent deals are OpenAI’s support from MGX in Abu Dhabi, financing for xAI from MGX, the participation of the Qatar Investment Authority and the Oman Investment Authority, as well as the involvement of QIA and Singapore’s GIC in a $13 billion funding round for Anthropic.
The United States attracted the largest share of investments – $220.4 billion, tied to a strong focus on AI. However, Capapé’s study, which covered direct investments over 18 months to December 2025, only scratched the surface, as many sovereign fund investments are not disclosed.
Energy-rich countries, notably the Gulf states and Norway, remained big spenders; however Temasek of Singapore led deal activity, completing 71 transactions.
The study recorded 12 new funds, including MGX, as well as funds in Ireland, the United Kingdom, Botswana, and Spain. Capapé noted that the trend reflects growing interest in using state capital to pursue strategic investments and expand influence abroad.
Non-market factors are more important now than ever since the end of the Cold War. We are entering a new paradigm, and sovereign wealth funds are part of this shift.
– Capapé
In conclusion, the study emphasizes that geopolitical shifts are reorienting sovereign funds toward national priorities, with a focus on artificial intelligence, infrastructure, and strategic industries. It is clear that the interaction between state capital and global value chains will intensify, and the influence of sovereign investments on the world economy and policy will grow in the future.