Set to debut sometime toward the end of this year or the start of 2025, the upcoming fund will focus on investments in artificial intelligence and related hardware technologies, according to sources.
The objective is to accumulate $1 billion in assets, with anticipated contributions from Cohen and employees at Point72, as noted by the insider. This new fund will operate independently from the primary portfolio, given the unique flexibility required for its net exposure.
Point72 has declined to comment, while Bloomberg News was the first to break this story earlier this week.
Cohen has openly endorsed AI as a significant investment opportunity with enduring long-term potential, comparing it to the technological advancements that occurred in the 1990s.
The rise in AI-related stocks, particularly as industry leaders like Nvidia exceed a $3 trillion market valuation, has propelled the overall market to record heights this year. Even firms with limited connections to AI have seen gains from the boosted market valuations.
Refuting the notion of a bubble, Cohen expressed confidence in the market’s capacity to appreciate AI’s potential for meaningful improvements in corporate performance during an April interview with CNBC.
As the owner of the Mets, he also pointed out AI’s ability to enhance productivity across diverse business sectors. He revealed that Point72 managed to save $25 million by utilizing efficiencies derived from advanced language models such as ChatGPT.
As of April, Point72 oversees nearly $34 billion in assets.
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