Coatue raises $1 billion for AI betting

Coatue Management, a hedge fund that has invested heavily in tech startups throughout the pandemic boom, is raising $1 billion to support artificial intelligence corporations, Bloomberg reported on Monday.

The funds that can contribute to the corporate’s flagship fund will probably be obtained primarily from institutional investors. However, the report shows that wealthy individuals with accounts at brokerage Raymond James and Associates can even spend money on Coatue.

Coatue, which manages nearly $50 billion in assets, invested in greater than 170 VC-backed corporations in 2021, based on PitchBook data. Since then, Coatue has dramatically slowed its pace of investing in startups, supporting only 81 corporations in 2022 and around 30 corporations in 2023.

However, the cross-border investor shouldn’t be done investing in private corporations. According to PitchBook data, in 2024 Coatue supported 29 startups. The company’s latest AI-focused investments include Glean, Scale AI and Skild AI, which is constructing a general-purpose AI robot. Philippe Laffont, founding father of Coatue (pictured above), said they’re particularly enthusiastic about humanoid robots with artificial intelligence-powered brains.