Magnetar Closes $235M Generative AI Venture Fund 

Magnetar closed its debut venture fund, Magnetar AI Ventures Fund LP, at $235 million. The fund focuses on early- to growth-stage firms in the generative artificial intelligence (AI) field. 

With capital from anchor investors PEAK6 Strategic Capital and Apex Fintech Solutions, the new fund expands on the company’s multi-strategy hedge fund expertise, which has historically operated in both the private and public domains. 

Magnetar AI Ventures will target companies operating across the AI stack, including models, infrastructure, and applications, as well as across modalities, including text, audio, and visual, the firm said. 

“The creation of this fund solidifies our commitment to advancing innovative AI solutions and supporting the bold entrepreneurs catalyzing this technological revolution,” said David Snyderman, managing partner of Magnetar. 

In addition, the fund has contracted with cloud provider CoreWeave to provide portfolio companies with exclusive access to a dedicated cluster of GPUs and fully reserved high-performance compute.  

Magnetar and funds managed by Blackstone Tactical Opportunities led a $2.3 billion debt financing facility for CoreWeave in August 2023, with additional participation from Coatue, DigitalBridge Credit and funds and accounts managed by BlackRock, PIMCO, and Carlyle. The deal followed a $221 million Series B and $200 million Series B extension funding rounds in April that year led by Magnetar. 

Founded in 2005, Evanston, IL-based Magnetar oversaw approximately $17.5 billion of assets under management as of June 30, 2024.