Magnetar Starts First-Ever Venture Fund, Targets Generative AI

Magnetar Capital, the $17.5 billion money manager known for alternative credit and hedge fund investing, is pushing into newer territory: venture capital.

Magnetar has launched its first-ever dedicated fund for backing startups, with a focus on generative artificial intelligence technology. It’s the first step in a broader move to build out a venture business.

“We are going through a generational technology revolution that’s going to require possibly trillions of dollars of investments,” said Jim Prusko, Magnetar’s senior portfolio manager who is helping oversee the fund. “So there are going to be many opportunities given the scale and ...