Steve Cohen is set to make a big push into investing in AI

Billionaire investor Steve Cohen’s Point72 plans to launch a separate, synthetic intelligence-focused hedge fund to capitalize on the growth, in response to a individual near the agency’s plans.

The brand new lengthy/quick fairness fund, to be launched later this yr or early 2025, might be targeted on AI and AI-related {hardware}, the individual stated.

The agency is aiming to boost $1 billion, with Cohen himself and Point72 workers anticipated to contribute, the individual added. This stand-alone public fairness providing will dwell exterior the primary fund because of the want for a more-flexible internet publicity, the individual stated.

Point72 declined to remark. Bloomberg Information first reported on the potential providing Tuesday.

Cohen not too long ago got here out as a long-term AI bull. He has referred to as AI a “actually sturdy theme” for investing, evaluating the rise to the technological developments within the Nineties.

The large rally in AI-related shares akin to Nvidia has lifted the broader market to report highs this yr. The chipmaker big has topped a $3 trillion market cap amid the growing enthusiasm, whereas any inventory tangentially linked to AI has skilled a runup in worth.

“I do not see it as a bubble. I believe the markets are discounting a few of what we … assume AI goes to do for corporations,” the Point72 founder stated in a CNBC interview in April.

The Mets proprietor highlighted AI’s position in enhancing productiveness at mainly each firm. Cohen stated his funding agency discovered a approach to save $25 million through the use of giant language fashions akin to ChatGPT to enhance effectivity.

Point72 oversees almost $34 billion in belongings as of April.