Major hedge funds, including Bridgewater Associates, Tiger Global Management, and Discovery Capital, have significantly increased their investments in Big Tech companies during the second quarter. This strategic shift reflects growing confidence in the artificial intelligence sector's potential. The AI boom, spurred by innovations like ChatGPT, has transformed data centre construction into a competitive arena, with billions being invested in servers, chips and infrastructure.
Fueled by the rapid expansion of generative AI, the demand for data centres is surging, leading to increased investment from private equity, venture capital, and sovereign wealth funds. Industry projections estimate that global spending on data centres could reach nearly $3 trillion by 2029, with half of that amount coming from investors and developers. This influx of capital is enabling both established tech giants and emerging companies to develop next-generation supercomputers and expand their AI capabilities.
New hedge funds focused on AI are emerging, attracting substantial investments. These funds are targeting equities poised to benefit from AI adoption, including semiconductors, infrastructure, and power, as well as select startup investments. However, some industry experts caution that investor sentiment can shift quickly, similar to previous thematic booms.
