Australia’s largest pension fund is planning to reduce its allocation to global equities next year, amid signs that the artificial intelligence boom in the US stock market could be running out of steam.

John Normand, head of investment strategy at the A$400bn (US$264bn) AustralianSuper, told the Financial Times that not only did valuations of big US tech companies look high relative to history, but the leverage being used to fund AI investment was increasing “very rapidly”, as was the pace of fundraising through mergers, venture capital and public listings.