Coatue Management Secures $1 Billion Fund for Artificial Intelligence Startups
Coatue Management raises $1 billion from institutional investors to specifically target artificial intelligence companies. The hedge fund shifts its strategy after significantly slowing its overall startup investment pace since 2021.
Coatue Management raises $1 billion to invest specifically in artificial intelligence companies, according to a new Bloomberg report. The firm raises this capital primarily from institutional investors to top up its flagship fund, though high-net-worth individuals connected to Raymond James & Associates also have the opportunity to contribute.
This massive AI fund marks a strategic shift for the hedge fund, which drastically slows its startup investing pace after a record-breaking 2021. PitchBook data shows Coatue backs 170 VC-backed companies in 2021, but that number drops to 81 in 2022 and just 30 in 2023. Despite this overall slowdown, the firm still supports 29 startups so far in 2024.
Coatue's recent AI-focused investments include notable companies like Glean, Scale AI, and Skild AI. Founder Philippe Laffont expresses particular enthusiasm for the future of humanoid robots equipped with AI-powered brains, signaling where a significant portion of this new billion-dollar fund likely goes.