AI-driven hedge fund Numerai, backed by Paul Tudor Jones, received a commitment of up to $500 million from JPMorgan Asset Management. This substantial amount will double its assets under management, reflecting institutional interest in crypto-friendly asset management.
Numerai confirmed that these funds will be deployed within a year, with returns linked to crowdsourced trading models built by thousands of data scientists worldwide.
Since its establishment in 2015, Numerai's assets under management have expanded to approximately $450 million, showing significant growth over three years. In 2024, the fund achieved a net return of over 25% through crowdsourcing, artificial intelligence, digital assets, and other quantitative strategies.
Numerai has also launched its own cryptocurrency, Numeraire (NMR), and began repurchasing NMR tokens this July, starting with an amount of $1 million.
After JPMorgan announced its investment, the price of NMR rose over 38% to $11.40, with daily trading volume surging by more than 880%.
Although JPMorgan has not directly commented on its commitment to Numerai, its investments in digital assets have been increasing in recent years. The bank is collaborating with Coinbase to facilitate cryptocurrency purchases and is exploring the issuance of stablecoins and crypto-backed loans.
The increasing synergy between cryptocurrency and artificial intelligence
Numerai guides investment strategies through artificial intelligence, blockchain technology, and crowdsourced prediction models, illustrating that the integration of these technologies is not limited to hedge funds.
For example, bitcoin mining companies are increasingly reallocating resources towards AI and high-performance computing tasks. Companies like Hive Digital and Hut 8 have begun to transform to meet demands beyond traditional cryptocurrency mining.
DNA Fund is deeply involved in the Bittensor ecosystem, with CEO Chris Miglino stating that decentralized AI has become their core focus.
According to predictions by the United Nations Conference on Trade and Development, artificial intelligence will become the most valuable technology sector in the world over the next decade, and its integration with existing systems will accelerate.
