Nicolai Tangen, CEO of Norges Bank Investment Management, the manager of the world’s largest sovereign wealth fund with $2 trillion in assets, has detailed stress-test scenarios revealing potential massive losses for Norway’s Government Pension Fund Global. An AI bubble collapse would cut the fund’s value by approximately 35%, roughly $700 billion, while geopolitical upheaval would trigger a 37% decline. The fund has already posted a 1.9% loss in Q1 2026, losing approximately 636 billion Norwegian kroner ($68 billion), its first quarterly decline in four quarters. Tangen has emphasized concentration risks in high-valuation technology sectors and advocates strengthening European capital markets to counterbalance US tech dominance.
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