JPMorgan Pours $500M Into AI Hedge Fund Powered by Crypto

2025/08/28 23:31

2 min read

The fund, backed by billionaire Paul Tudor Jones, blends crowdsourced AI models with crypto-based incentives to fuel its trading strategy.

Numerai’s Turnaround Attracts Wall Street

Founded by Richard Craib, Numerai has struggled in the past but delivered a 25% return last year after heavy losses in 2023. Craib said the rebound convinced major players like JPMorgan to take notice. “When you’re doing something unusual, people wait for a track record. Now they see we’re not just back, we’re way back,” he explained.

Crypto-Linked Model

Numerai relies on its native token, Numeraire (NMR), to incentivize data scientists worldwide who compete to build the best predictive models. Participants stake NMR to back their forecasts — earning tokens when correct and losing them when wrong. The approach reduces labor costs associated with recruiting elite talent and, according to Craib, redefines the hedge fund model by tapping into “all the talent in the world.”

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The news of JPMorgan’s investment sent NMR soaring, with the Ethereum-based token jumping 105% in a single day to $23, lifting its market cap to $183 million.

Redefining Hedge Funds With AI

By blending AI, global crowdsourcing, and crypto incentives, Numerai aims to challenge traditional finance’s resource-heavy model. For JPMorgan, the investment reflects Wall Street’s growing interest in AI-driven finance — and its willingness to experiment with crypto-powered structures.

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