Renowned billionaire and investment guru Steve Cohen’s firm, Point72, is strategizing to establish a dedicated hedge fund that zeroes in on artificial intelligence, a move inspired by recent surges in the sector, a source familiar with the venture unveiled.
Slated for launch towards the end of this year or in the beginning of 2025, the new fund will primarily deal with investments in AI and its supporting hardware technologies, the insider conveyed.
With an ambition to secure $1 billion in capital, contributions are anticipated from Cohen and Point72 staffers, noted the source. The proposed fund will operate separately from the core portfolio given the unique flexibility needed for its net exposure.
Point72 has reserved comments, while Bloomberg News was the first to break news of this development on Tuesday.
Cohen has publicly endorsed AI as a strong investment theme with long-term viability, drawing parallels to the technological leaps made in the 1990s.
The upswing in AI stocks, with giants like Nvidia sailing past a $3 trillion valuation, has propelled the entire market towards historic peaks this year. Even stocks with minor links to AI have been riding the wave of escalated market valuation.
Dismissing notions of a bubble, Cohen has expressed optimism in the market’s ability to foresee AI’s potential to significantly buoy company performance, as shared in an interview with CNBC in April.
As the owner of the Mets, he also emphasized how AI has the potential to amplify productivity across nearly all business landscapes. He revealed that Point72 was able to economize $25 million due to the efficiencies introduced by advanced language models like ChatGPT.
As of April, Point72 has nearly $34 billion under management.
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