Numerai, an AI-driven hedge fund backed by Paul Tudor Jones, has secured a commitment of up to $500 million from JPMorgan Asset Management — a vast sum that could more than double its assets under management and highlight a growing institutional interest in crypto-friendly money managers.
Numerai confirmed Tuesday that the allocation will be deployed over the next year, with returns tied to its crowdsourced trading models built by thousands of data scientists worldwide.
Since its inception in 2015, Numerai has expanded its assets under management to roughly $450 million, with most of that growth occurring over the past three years.
In 2024, the hedge fund delivered a net return of more than 25% through strategies combining crowdsourcing, artificial intelligence, digital assets and other quant-driven approaches.
The firm also operates its own cryptocurrency, Numeraire (NMR), which was launched in 2017. In July, Numerai began repurchasing NMR tokens, starting with $1 million.
Following Tuesday’s JPMorgan announcement, NMR surged more than 38% to trade at $11.40, with daily trading volumes up over 880%, according to CoinMarketCap.
While JPMorgan did not comment directly on its Numerai commitment, the Wall Street megabank has steadily increased its involvement in digital assets in recent years. It has partnered with Coinbase to facilitate crypto purchases and is reportedly exploring both stablecoin issuance and crypto-backed lending, potentially allowing clients to borrow against holdings such as Bitcoin (BTC) and Ether (ETH).
Related: From skeptic to supporter: JPMorgan CEO now a ‘believer’ in stablecoins, blockchain
The growing synergies between crypto and AI
Numerai stands out as a fund that blends artificial intelligence, blockchain technology and crowdsourced prediction models to guide its investment strategy. But the convergence of these technologies is not limited to hedge funds.
One of the clearest examples is in the mining sector, where Bitcoin mining firms are increasingly reallocating resources toward AI and high-performance computing workloads. Companies such as Hive Digital, Hut 8, TeraWulf and IREN have already begun this pivot, positioning themselves to capture demand beyond traditional crypto mining.
DNA Fund, a crypto-focused investment manager, is deeply engaged in the Bittensor ecosystem. CEO Chris Miglino told Cointelegraph that “decentralized AI is consuming everything we’re doing.”
Bittensor, a decentralized machine learning network, currently carries a market capitalization of about $3.2 billion, according to CoinMarketCap.
Related: ‘US tariffs on mining rigs are rising sharply’ as CleanSpark, IREN report massive liabilities
The United Nations Conference on Trade and Development (UNCTAD) projects that artificial intelligence will become the world’s most valuable technology sector by the next decade, underscoring the likelihood that its integration with existing systems will accelerate. UNCTAD further estimates that AI’s share of the global “frontier tech” market will quadruple over the next eight years.
Related: AI and blockchain are already disrupting legacy education system
