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AI stress test warns Norway fund could lose 18%

8/18/2026

Summary

Story summary

Nicolai Tangen warned that an AI-driven correction could cut the Government Pension Fund Global’s $2.4 trillion portfolio.
The fund posted a first-half-2026 profit of 1,753 billion kroner ($186 billion/€161 billion).
Stress-test estimates suggest an AI correction could erase 18 % of value, about €432 billion, equivalent to seven years of revenue.
Karin Thorburn said the fund follows a passive strategy with hedging limits.
Javier Capape said the fund holds 70 % equities, 30 % bonds and uses derivatives.

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Story summary

Nicolai Tangen warned that an AI-driven correction could cut the Government Pension Fund Global’s $2.4 trillion portfolio.
The fund posted a first-half-2026 profit of 1,753 billion kroner ($186 billion/€161 billion).
Stress-test estimates suggest an AI correction could erase 18 % of value, about €432 billion, equivalent to seven years of revenue.
Karin Thorburn said the fund follows a passive strategy with hedging limits.
Javier Capape said the fund holds 70 % equities, 30 % bonds and uses derivatives.