Magnetar Capital, the $17.5bn money manager known for alternative credit and hedge fund investing, has closed a new $235m venture capital fund – the Magnetar AI Ventures Fund – which will focus on investments in generative AI startups.

According to a press statement, the new fund will invest in early-to-growth stage companies that are driving advancements in artificial intelligence, particularly in the areas of AI models, infrastructure and applications.

The fund’s investor base includes major global institutions and strategic partners, with PEAK6 Strategic Capital and Apex Fintech Solutions serving as the anchor investors.

David Snyderman, Managing Partner at Magnetar, commented: "We believe generative AI will reshape the future. This fund solidifies our commitment to advancing innovative AI solutions and supporting the bold entrepreneurs catalysing this technological revolution."

Magnetar AI Ventures plans to leverage its institutional platform and network in AI and finance to provide portfolio companies with both capital and strategic support. Its partnership with CoreWeave, an AI hyperscaler, will offer portfolio companies with access to GPUs and high-performance computing resources. Magnetar expects this access to be crucial as AI companies scale their operations in an increasingly competitive landscape.

Jim Prusko, Senior Portfolio Manager and Partner at Magnetar, also commented: "As AI rapidly advances toward widespread adoption, it has become clear that HPC is the backbone of the AI economy. 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."