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Numerai’s ‘Final Hedge Fund’ Approach Reaches $500M as Artificial Intelligence and Collective Intelligence Transform the Financial Sector

Numerai’s ‘Final Hedge Fund’ Approach Reaches $500M as Artificial Intelligence and Collective Intelligence Transform the Financial Sector

Bitget-RWA2025/11/20 18:14
By:Bitget-RWA

- Numerai, an AI-driven hedge fund, raised $30M in Series C funding led by university endowments, valuing it at $500M—five times its 2023 valuation. - The funding, alongside J.P. Morgan's $500M capacity commitment, aims to scale Numerai's AUM toward $1B, with AUM growing from $60M to $550M in three years. - Numerai's model combines global data science tournaments and machine learning, using Ethereum-based Numeraire (NMR) to incentivize participants and aggregate trading signals. - The firm's 25.45% 2024 ne

Numerai, a hedge fund based in San Francisco that utilizes artificial intelligence and decentralized finance, has raised a

led by leading university endowments, bringing the company's valuation to $500 million—five times higher than in 2023. This funding, together with of up to $500 million in hedge fund allocations, enables Numerai to expand its AI-powered strategies and approach $1 billion in assets under management (AUM). The round also included returning backers such as Union Square Ventures, Shine Capital, and macro investor Paul Tudor Jones .

Richard Craib, Numerai's founder and CEO, highlighted the importance of this investment, saying it supports the company's mission of "creating the final hedge fund—driven by AI and built by elite data scientists worldwide." The new funds will help Numerai grow its AI research and engineering teams, increase hiring for essential roles, and further develop its institutional offerings

. Over the last three years, Numerai's AUM has climbed from $60 million to $550 million, and its main global equity hedge fund achieved a net return of 25.45% in 2024, marking its best performance to date .

The firm's unique approach merges machine learning with a worldwide data science competition. Thousands of contributors submit stock market predictions, which Numerai combines into a Meta Model for trading. Participants are incentivized with

(NMR), an Ethereum-based token that rewards top contributors and aligns their interests with Numerai's performance . Craib pointed to the scalability of this system, mentioning Numerai's recent recruitment of an AI engineer from Meta and the launch of a New York office .

Numerai's investment environment mirrors larger shifts in asset management, where liquidity and returns that are not correlated with traditional markets are increasingly prized. Craib mentioned that the "high cost" of conventional markets is pushing demand for alternative strategies, with Numerai's 8% net return in 2025 surpassing the PivotalPath Equity Quant Index's 3% through October

. The company's platform also connects with trends in AI and crypto, as it experiments with large language models to analyze news and other unstructured information .

Numerai's growth highlights the increasing momentum behind democratizing finance through collective intelligence. While prediction markets like Kalshi and Polymarket gather probability-based bets, Numerai turns individual models into sophisticated trading systems

. This blended strategy has attracted both institutional and venture capital investors, with Craib predicting the company will become profitable in 2025 .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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