How the Hedge Fund Magnetar Is Financing the AI Boom

Podcast: Odd Lots (LS 64 · TOP 0.05% what is this?)Episode: How the Hedge Fund Magnetar Is Financing the AI BoomPub date: 2024-12-09Get Podcast Transcript →powered by Listen411 - fast audio-to-text and summarizationAI software and the hardware that enables it have been hugely popular investments this year. But there have still been limiting factors on the sector, including a shortage of compute to power so many new start-ups. Investors don't want to finance companies that lack a signed contract for compute, and compute providers don't want to sign contracts for startups that haven't already secured funding. Now Magnetar, a hedge fund which started its first ever venture capital fund earlier this year, is trying to solve this "chicken and egg" problem by offering compute in exchange for equity. Magnetar was an early investor in the AI space, partnering with Coreweave and recently helping the hyperscaler to raise $7.5 billion. On this episode, we speak with Jim Prusko, partner and senior portfolio manager on Magnetar's alternative credit and fixed income team, about why the hedge fund is getting into venture capital and some of the new ways they're deploying money in the space. Read More: Magnetar Starts First-Ever Venture Fund, Targets Generative AI Become a Bloomberg.com subscriber using our special intro offer at bloomberg.com/podcastoffer. You’ll get episodes of this podcast ad-free and exclusive access to our daily Odd Lots newsletter. Already a subscriber? Connect your account on the Bloomberg channel page in Apple Podcasts to listen ad-free. See omnystudio.com/listener for privacy information.The podcast and artwork embedded on this page are from Bloomberg, which is the property of its owner and not affiliated with or endorsed by Listen Notes, Inc.