Global sovereign wealth funds are riding high on institutional appetite. Assets under management hit a record $15.2 trillion, extending three consecutive years of growth.

The numbers tell a compelling story: since 2022, these mega-funds have accumulated an additional $4.6 trillion—a 43% surge that largely tracks the AI boom. Major government investment vehicles have been strategically repositioning portfolios to capture exposure to artificial intelligence infrastructure and innovation.

What's driving this? The convergence of technological disruption, geopolitical positioning, and yield-seeking behavior. Sovereign funds manage long-term capital on behalf of nations, so their moves signal where smart money sees structural value beyond the cycle. The AI rally has become a focal point, reshaping how these institutions think about return generation and risk diversification heading into 2025.