JPMorgan Commits Hedge Fund to AI in Technology Arms Race

  • Lender is expanding machine learning beyond investment banking
  • Bank has stumbled with a few hedge fund bets in recent years

Photographer: Scott Eells/Bloomberg

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JPMorgan Chase & Co. is pushing its use of artificial intelligence beyond investment banking and into hedge funds.

The bank’s asset management arm is planning a strategy to invest in emerging and established machine-learning statistical-arbitrage hedge funds, according to a person familiar with the matter. The vehicle -- dubbed for now the Machine Learning Fund Ltd. -- will operate within JPMorgan’s $15 billion fund-of-hedge funds business, according to June 20 regulatory filings.