Numerai secures $500M from JPMorgan to scale its AI-driven hedge fund, hiring top talent like ex-Meta AI researchers to boost its $950M AUM.
JPMorgan Chase has allocated $500 million to the AI hedge fund Numerai. As of this writing, the San Francisco-based hedge fund has doubled its assets under management, increasing its AUM from $60 million to $450 million.
JPMorgan provides Numerai with a $500 million investment
The AI hedge fund’s management team disclosed in a press release that JPMorgan has invested $500 million in the fund, thereby securing its capacity. The asset manager is currently one of the largest allocators of quantitative strategies globally, including machine learning quantitative funds.
Numerai is eager to increase its personnel in light of the most recent funding. The organization announced that it has recently recruited a trading engineer from Voleon and an artificial intelligence (AI) researcher previously employed at Meta.
In an interview with Bloomberg, Richard Crain, the founder of Numerai, stated that investors delayed their decision until the company demonstrated its ability to maintain performance. Additionally, the organization has enjoyed a good existence within the sector since 2015.
“They might wait even longer before they get excited when you’re doing something unusual and different,” Craib stated.
JPMorgan’s investment will be instrumental in Numerai’s developing a hedge fund tailored to the AI era. Numerai has already attracted 517 data scientists to its leaderboard, who have staked 784,044 NMR tokens and approximately 4,238 signal models.
In the previous year, Jamie Dimon, the CEO of JPMorgan Chase, disclosed that the organization is enhancing its utilization of artificial intelligence (AI) to revolutionize banking operations. Additionally, the bank has collaborated on numerous AI initiatives, such as OpenAI’s ChatGPT.
Today, the price of NMR has increased by more than 33%
On Tuesday, the price of NMR increased by over 33% in response to the announcement, reaching approximately $11.71. The small-cap altcoin, which has a fully diluted valuation of roughly $125 million, has since surged to its most significant level in three months, potentially signaling the end of its consolidation. It is important to note that this rally occurs in the context of a market correction in the broader crypto market.
Numerai announced a strategic NMR buyback from the open market on July 17, 2025. In collaboration with the Coinbase Global crypto exchange, the company implemented a buyback of $1 million in NMR. This action is noteworthy.
The NMR buyback was initiated in response to a strategic halving of the token’s total supply and is presently restricted to 11 million tokens. Numerai presently maintains approximately three million NMR tokens in its treasury.
The Importance of the Investment
The radical AI-driven hedge fund model of Numerai will be validated by the strategic investment of $500 million from JPMorgan to the company. Additionally, Numerai has achieved unicorn status by amassing an impressive $1 billion in AUM.
The Numerai global equity hedge fund generated a net return of 25.45 percent in 2024, which was accompanied by a Sharpe ratio of 2.75. It is worth noting that Numerai has only experienced one negative month, surpassing the performance of most conventional hedge funds worldwide.
In the immediate future, the price action of NMR will be significantly influenced by the approval from JPMorgan. Additionally, altcoins that conventional financial institutions back have garnered the attention of speculative crypto traders.
Potential buybacks of NMR tokens will likely be to fortify its market structure further. Additionally, Numerai disclosed that it had initiated strategic NMR buybacks from the open market.
