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Magnetar Capital has raised $235m for its new AI Ventures Fund to invest in early-to-growth stage companies at the forefront of generative AI.
“The fund builds on Magnetar’s history of investing opportunistically across the private-public continuum and serving as a long-term partner to portfolio companies,” according to a statement from the Power List firm.
The fund is backed by allocators including PEAK6 Strategic Capital and Apex Fintech Solutions, which are anchoring the fund.
Magnetar said AI Ventures will target companies operating across the AI “stack,” including models, infrastructure, and applications – as well as across modalities – including text, audio, and visual. It will back companies with differentiated technology, execution-oriented management teams and demonstrable business traction.
It is the latest large launch from a major US hedge fund firm. “We believe generative AI will reshape the future. The creation of this fund solidifies our commitment to advancing innovative AI solutions and supporting the bold entrepreneurs catalyzing this technological revolution,” said David Snyderman, managing partner of Magnetar.
The venture has contracted with CoreWeave, the AI Hyperscaler, to provide portfolio companies with exclusive access to a dedicated cluster of GPUs and fully reserved high performance computing.
The firm, founded in 2005, managed about $17.5bn at midyear across its range of alternative credit and fixed income, systematic investing, healthcare, venture, and fundamental and event-driven investing strategies.
It is headquartered in Evanston, Illinois and has offices in New York and London.