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Hedge funds unwind AI bets as tech selloff accelerates
Hedge funds have erased all their net purchases of global artificial intelligence stocks accumulated since the beginning of 2025 in just five trading sessions, as concerns over elevated valuations and the sustainability of AI investment trigger a sharp reduction in technology exposure, according to Goldman Sachs prime brokerage data. The reversal follows approximately $20bn in technology stock sales over two weeks, approaching the $23bn recorded during a major unwinding in July. Selling of existing long positions outpaced new short selling by 3.5 times, suggesting managers have prioritised red