Calpers pulls back from big tech as AI jitters deepen neocloud sell-off

Calpers, one of the largest pension funds in the US, is pulling back from its investments in big tech companies, citing concerns over the valuations of AI-related investments and the potential returns on the significant spending in this area. This decision reflects a broader trend of investors questioning the value and future prospects of tech companies, especially those heavily invested in AI. The shift towards private equity indicates a search for more stable and predictable returns, away from the volatility often associated with tech stocks. This move may have implications for the tech sector, potentially influencing investor sentiment and allocation decisions. As the tech industry continues to evolve, with a growing focus on AI, investors are adopting a cautious approach, weighing the potential benefits against the risks. The decision by Calpers to reduce its exposure to big tech may prompt other investors to reevaluate their strategies, potentially leading to a shift in the market.