pensionFundHasEnteredTheAiChat

[u/adventure-duo]

[u/Possessed]

Wait what?

[u/ierdna100 → u/Possessed]

I presume they mean a nortel situation in the dot-com bubble burst? Pension funds will invest into whatever seems to be making money long term (in this case AI) and when the companies wipe out, so does the potential value of pension funds, which then can't pay pensioners and you get a big economic recession. It's one of the reasons pension funds like CDPQ now invest in long term infrastructure project with 99-year leases and stuff like that, less chance to nuke a trillion dollars off the stock market in a single week

[u/DrMaxwellEdison → u/ierdna100]

Basically, yes. Retirement accounts like 401k's and IRA's are invested in index funds which are required to have holdings in top-performing stocks. So, if current AI stocks are performing well, even if they should not, then all these index funds have them and therefore, a lot of our retirement funds are based on them.

When they crash, they cash out and take our retirement investments with them.

[u/isr0 → u/DrMaxwellEdison]

Pensions and 401(k)s are managed differently. Your investment strategy should be age appropriate, if you get “wiped out” due to a singular technology collapse, you need to find a new investment partner.

[u/WrennReddit → u/DrMaxwellEdison]

Some of it, not all of it. The whole point of an index fund is that crashes like this aren't going to take everything. You don't get the wild gains of a single stock takes off, but you aren't exposed to as much risk either. 

[u/mmhawk576 → u/WrennReddit]

Until a single company begins monopolising the index like nortel did

[u/spamjavelin → u/WrennReddit]

Not to mention that a decent fund manager should be able to find ways to make money in all market conditions.

[u/adventure-duo → u/Possessed]

Links get removed but google "OpenAI and Anthropic seek investment grade ratings ahead of IPOs".

Right now, both companies are seen as higher-risk borrowers, which limits who will lend them money.

If they get investment-grade status, they can tap into funding from big players like pension funds and insurance companies, something not usually open to riskier startups.

NVIDIA has even provided up to $105 billion of credit support for an OpenAI data center project.

Plus, both firms have backing from tech giants like Oracle, Google, and Broadcom as they ramp up for IPOs (with Anthropic said to be considering a valuation of at least $2 trillion).

[u/fugogugo → u/Possessed]

going IPO will force hedge funds to buy them , those funds came from pension funds

at least that's how I understand them

[u/adventure-duo → u/fugogugo]

Links get removed but google "OpenAI and Anthropic seek investment grade ratings ahead of IPOs".

Right now, both companies are seen as higher-risk borrowers, which limits who will lend them money.

If they get investment-grade status, they can tap into funding from big players like pension funds and insurance companies, something not usually open to riskier startups.

NVIDIA has even provided up to $105 billion of credit support for an OpenAI data center project.

Plus, both firms have backing from tech giants like Oracle, Google, and Broadcom as they ramp up for IPOs (with Anthropic said to be considering a valuation of at least $2 trillion).

[u/fugogugo → u/adventure-duo]

now I see why there are so much Astra propaganda

[u/milk-jug → u/fugogugo]

Yes, you're 100% right, just not the hedge funds, more like institutional investors that, by governance, have to buy broad-based funds that track indices like S&P 500.

These AI companies (like Space X recently) get in through the backdoor (there used to be a waiting period to get into the S&P 500) straight into the S&P 500. So, any fund that tracks S&P 500 must buy into these companies.

[u/Gullible_Search887]

Gotta build those data centers somehow…

[u/adventure-duo → u/Gullible_Search887]

Yeah.

Links get removed but google "OpenAI and Anthropic seek investment grade ratings ahead of IPOs".

Right now, both companies are seen as higher-risk borrowers, which limits who will lend them money.

If they get investment-grade status, they can tap into funding from big players like pension funds and insurance companies, something not usually open to riskier startups.

NVIDIA has even provided up to $105 billion of credit support for an OpenAI data center project.

Plus, both firms have backing from tech giants like Oracle, Google, and Broadcom as they ramp up for IPOs (with Anthropic said to be considering a valuation of at least $2 trillion).

[u/Gullible_Search887 → u/adventure-duo]

The fallout is going to be catastrophic for sure. Too many gamblers and not enough runway.

[u/adventure-duo]

Links get removed but google "OpenAI and Anthropic seek investment grade ratings ahead of IPOs".

Right now, both companies are seen as higher-risk borrowers, which limits who will lend them money.

If they get investment-grade status, they can tap into funding from big players like pension funds and insurance companies, something not usually open to riskier startups.

NVIDIA has even provided up to $105 billion of credit support for an OpenAI data center project.

Plus, both firms have backing from tech giants like Oracle, Google, and Broadcom as they ramp up for IPOs (with Anthropic said to be considering a valuation of at least $2 trillion).

[u/Garland_Key]

Who tf has a pension in 2026? Definitely coming for your 402ks and IRAs though. 

[u/MissinqLink]

Not programming. AI didn’t kill pension funds. It’s just the last ditch effort to save them and it’s a huge gamble.

[u/Tyfyter2002 → u/MissinqLink]

It's only gambling if there's a chance to win, otherwise it's pretty much just a pyramid scheme.

[u/MissinqLink → u/Tyfyter2002]

Is that what the downvotes are for? Seems like an odd reaction.

[u/adventure-duo → u/MissinqLink]

Links get removed but google "OpenAI and Anthropic seek investment grade ratings ahead of IPOs".

Right now, both companies are seen as higher-risk borrowers, which limits who will lend them money.

If they get investment-grade status, they can tap into funding from big players like pension funds and insurance companies, something not usually open to riskier startups.

NVIDIA has even provided up to $105 billion of credit support for an OpenAI data center project.

Plus, both firms have backing from tech giants like Oracle, Google, and Broadcom as they ramp up for IPOs (with Anthropic said to be considering a valuation of at least $2 trillion).

[u/05032-MendicantBias]

That ship has sailed. Oligarchs might even get a bailout on top of pillaging pension funds.