Steve Cohen is poised to significantly increase his investments in artificial intelligence.

• Steve Cohen's Point72 intends to establish a new hedge fund that specializes in artificial intelligence to take advantage of the current market surge.
• The objective of the company is to obtain $1 billion in funding, with Cohen and Point72 staff members anticipated to participate.

A hedge fund focused on artificial intelligence is being planned by Point72, the investment firm owned by billionaire Steve Cohen, according to a source close to the plans.

A new long/short equity fund, set to launch in the near future, will concentrate on AI and AI-related hardware, according to the source.

The firm plans to raise $1 billion through a stand-alone public equity offering, with Cohen and Point72 employees contributing, as stated by the source. This offering will be separate from the main fund to allow for greater flexibility in net exposure, the person explained.

Bloomberg News first reported on the potential offering Tuesday, but Point72 declined to comment.

Recently, Cohen has stated that AI is a long-term investment theme, similar to the technological advancements of the 1990s.

The surge in AI-related stocks, including the chipmaker giant, has propelled the broader market to new heights this year. The market cap of the chipmaker giant has surpassed $3 trillion, fueled by the growing interest in AI. Any stock associated with AI has experienced a significant increase in value due to the increasing enthusiasm.

In a CNBC interview in April, the Point72 founder stated that he does not view the current market as a bubble, but rather believes that the markets are underestimating the potential impact of AI on companies.

Cohen, the Mets owner, emphasized the significance of AI in boosting productivity across all businesses. He revealed that his investment firm was able to save $25 million through the use of large language models like ChatGPT to optimize operations.

Point72 oversees nearly $34 billion in assets as of April.