JP Morgan injects $500 million! The AI hedge fund Numerai has grown sevenfold in three years, with an annual return of up to 25.45%.

Numerai builds crowd-sourced trading models and rewards submitters with NMR.

Numerai is a company that gathers "models from data scientists around the world" and provides them for hedge funds to use for trading. It was founded in 2015 by Richard Craib, and its core approach is to predict stock performance using crowdsourcing and AI, employing its own token NMR as part of the participation and rewards mechanism.

Traders can submit their trading signals, and Numerai will compare those signals with others to determine whether the signal is unique. The models submitted by the crowd are "weighted averaged" into a Meta Model, which is then used for trading, equivalent to a trading model based on "crowd wisdom average."

Numerai issued a cryptocurrency NMR on Ethereum with a supply cap of 11 million, reducing from 21 million in 2019, which can be staked on your own models to represent your confidence in them. If the model performs well, you receive more NMR; if it performs poorly, a portion of your stake is deducted (burned), establishing economic incentives.

AI hedge fund receives $500 million investment from JP Morgan

Numerai's asset scale has grown from about 60 million USD to 450 million USD in the past three years; the net return for 2024 is approximately 25.45%, making it their best-performing year since inception. Last month, Numerai also announced the launch of a 1 million USD NMR buyback.

Today, on the 27th of (, Numerai also announced that traditional financial giant J.P. Morgan will invest $500 million into the hedge fund. J.P. Morgan is one of the largest quantitative strategy allocation institutions in the world. In response, Numerai stated that it has recently hired an artificial intelligence researcher who previously worked at Meta and a trading engineer who worked at Voleon to expand the team. Meanwhile, the NMR token surged 122% within 24 hours.

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