Steve Cohen's Point72 Asset Management is set to launch a new hedge fund with a focus on artificial intelligence, aiming to raise approximately $1 billion.

The fund will concentrate on both investing in and betting against AI hardware and semiconductor companies globally, such as Nvidia, Broadcom and Marvell Technology, among others, which have been top performers this year alongside other leading AI and chip stocks.

A New Frontier In AI Investment

The new hedge fund, managed by portfolio manager Eric Sanchez, is expected to commence operations either late this year or in early 2025. It will be financed by a mix of external investors, Point72 employees and contributions from Cohen himself. Unlike Point72's main market-neutral fund, this new vehicle will have a more flexible mandate, potentially holding longer-biased positions, Bloomberg reported.

Cohen's Vision For AI

Cohen has been an outspoken advocate of AI's potential impact on various industries. In an April interview with CNBC, Cohen described AI as "transformational," comparing its potential to the tech boom of the 1990s. He emphasized that while the full effects of AI might take years to manifest, the technology has the power to revolutionize business operations and generate significant cost savings.

"There's going to be big winners and big losers," Cohen said, highlighting the unpredictable yet promising future of AI.

Point72 Asset Management, which had $33.9 billion under management as of April, is not new to AI-focused investments. In 2021, the firm launched Hyperscale, its first private equity fund aimed at modernizing companies through AI. Additionally, Point72 Ventures, founded in 2016, focuses on early-stage tech startups and is funded exclusively by Cohen.

Photo Via Shutterstock.