CalPERS Shifts Toward Private Equity as AI Doubts Weigh on Tech Stocks

California's public pension fund, CalPERS, is moving capital toward private equity as investors grow skeptical of current tech valuations. Concerns center on whether the heavy spending on artificial intelligence will generate returns that justify its cost. The pullback from large technology holdings comes amid a broader sell-off in neocloud companies, which provide cloud computing infrastructure for AI workloads. The reallocation reflects a wider wariness among institutional investors about the durability of the AI-driven rally.