Calpers cuts Magnificent Seven holdings as AI spending doubts mount
World's fifth-largest pension fund reduces tech stock exposure by 26%, shifts to private equity
California’s public pension fund Calpers reduced its combined direct shareholdings in the Magnificent Seven technology stocks by 26% in the first half of 2026, the Financial Times reported, as concerns over stretched valuations and the payoff from surging AI investment fuel a broader repositioning toward private equity. The move came alongside a warning from Elon Musk that financing for AI data centre companies has largely dried up, triggering a pre-market sell-off in neocloud providers CoreWeave, Cipher Digital and IREN.