this post was submitted on 18 Nov 2025
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186
The AI bubble may be about to burst. Mark Carney must not bail out its Tech Barons (breachmedia.ca)
submitted 2 weeks ago by NightOwl@lemmy.ca to c/canada@lemmy.ca
15 comments fedilink hide all child comments
 

Over the past few weeks alone, several AI leaders, including OpenAI CEO Sam Altman, began hinting that they expect governments to step in and bail out AI companies if and when the bubble bursts. After all, the U.S. government did exactly that in March of 2023 when Thiel's last big withdrawal of funds (from Silicon Valley Bank) precipitated a series of bank collapses.

With so much pension money and other public funds riding on AI stocks Carney could also decide to bail out AI giants and data centre builders with public funds, rather than take a precautionary tact and pull out investments now from over-bloated AI firms.

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[–] floofloof@lemmy.ca 37 points 2 weeks ago (3 children)

At the end of September the Canadian Pension Plan Investment Board (CPPIB), to which all working Canadians outside Quebec are subscribed, held $8 billion of Nvidia stock as its largest single equity holding. In fact, its eight largest stock holdings were all AI stocks. At $33 billion of combined value, these holdings amount to a quarter of the value of the entire pension fund.

Quebec’s main pension fund, La Caisse de dépôt et placement du Québec (CDPQ), also reported Nvidia as its largest holding at the end of September. Almost all of the “Maple Eight” big pension funds also lead with Nvidia and other AI stocks as their largest holdings, or they are loaded up on index funds that are in turn overloaded with Nvidia and other AI stocks.

That doesn't sound at all good.

[–] xthexder@l.sw0.com 23 points 2 weeks ago (1 children)

I guess we've learned absolutely nothing from putting all the retirement eggs in the Nortel basket and we're about to lose everyone's pensions yet again.

[–] cyborganism@piefed.ca 2 points 1 week ago

I don't think NVidia is going to go the way of Nortel anytime soon. But, it is concerning.

[–] SamuelRJankis@sh.itjust.works 6 points 2 weeks ago

I think there's some additional context that should be provided. CPPIB operates at arm's length from the government which is probably a good thing. There also something to be said about them switching passive index strategy and what we're paying executive now with questionable returns.

https://en.wikipedia.org/wiki/CPP_Investments

CPPIB is not considered a sovereign wealth fund because it operates at arm's length from the Government of Canada and solely manages CPP contributions paid by workers and employers, not public funds.

[–] dermanus@lemmy.ca 5 points 2 weeks ago

It's not ideal, but Nvidia is the biggest equity in the biggest market, it's no surprise it's prominent in diverse portfolios.