Innovative fund will offer portfolio companies access to high performance compute
Magnetar, a leading alternative asset manager, today announced the successful close of Magnetar AI Ventures Fund LP (“Magnetar AI Ventures” or the “Fund”), a $235 million venture fund that invests in early-to-growth stage companies advancing the generative AI revolution. 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. The Fund’s investor base is comprised of leading global institutions and strategic partners, including PEAK6 Strategic Capital and Apex Fintech Solutions, the anchor investors in this initiative.
Magnetar 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 – focusing on companies with differentiated technology, execution-oriented management teams and demonstrable business traction. Portfolio companies stand to benefit from the comprehensive resources of Magnetar’s institutional platform, the firm’s financial and operational expertise, and its extensive network of relationships across AI/ML and the broader finance sector.
"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. "As we continue to identify compelling investment opportunities and deploy capital, we are confident in our ability to help drive growth for our portfolio companies while generating long-term value for our investors.”
The Fund 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 compute (“HPC”). In addition, portfolio companies will have access to technical expertise and premium support.
"As AI rapidly advances toward widespread adoption, and demands on infrastructure intensify, it has become clear that HPC is the backbone of the AI economy,” said Jim Prusko, Senior Portfolio Manager and Partner at Magnetar. “We’re excited to deepen our partnership with CoreWeave to provide our portfolio companies with the HPC and resources necessary to build the businesses of the future.”
“We’re thrilled to partner with Magnetar as a significant investor to support the next wave of AI advancements. Through this Fund, portfolio companies will be able to solve financial and technical needs in one stop. Our investment underscores both our confidence in Magnetar’s approach and our conviction in the transformative potential of generative AI,” said Jenny Just, Co-Founder and Managing Partner of PEAK6 and Chairman of Apex Fintech Solutions.
For more information, visit www.MagnetarVentures.com.
About Magnetar
Founded in 2005, Magnetar is a multi-strategy and multi-product alternative investment manager with approximately $17.5 billion of assets under management as of June 30, 2024. Magnetar seeks to achieve stable risk-adjusted returns by opportunistically employing a wide-range of alternative credit and fixed income, systematic investing, healthcare, venture, and fundamental and event-driven investing strategies. Magnetar invests across the capital structure in both public and private transactions, utilizing fundamental and quantitative analysis. The firm is based in Evanston, Illinois, with additional offices in New York and London. Visit www.magnetar.com for more information.
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