A cutting-edge $30 million investment fund, Intelligent Alpha, is making waves by relying entirely on Artificial Intelligence (AI) for its portfolio management decisions. The fund’s CEO, Doug Clinton, lets three AIs — OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude — make all the critical investment decisions.

The trio of AIs acts as the investment committee, utilizing a unique process to generate portfolios. Intelligent Alpha’s strategy has been incredibly effective so far, with notable success in the stock market. For instance, the AI predicted a decline in Boeing stock before the infamous 737 MAX incident. It also made a highly profitable bet on Nvidia, which saw a 400% increase in value since the AI selected it in 2023.

Although Intelligent Alpha has primarily focused on traditional finance, it began to experiment with Bitcoin (BTC) in recent months. The AI models have set an ambitious target for Bitcoin, forecasting it could reach $140,000 under a scenario involving favorable regulatory changes and a potential Trump re-election.

The fund operates by feeding vast datasets — like revenue history and future earning projections — to the AIs, who then apply the investment philosophies of legendary investors such as Warren Buffett, Stanley Druckenmiller, and Cathie Wood. The AIs are tasked with developing portfolios while adhering to specific risk and opportunity frameworks.

Intelligent Alpha’s models don’t just pick stocks; they predict market trends and potential opportunities, as seen with their early call on Chinese stocks, which surged following a major stimulus announcement by the Chinese government. The AI’s prescient decision to bet on Nvidia ahead of its massive growth also paid off significantly.

While the AI models are incredibly accurate with traditional markets, their ability to predict the future, especially in macroeconomic trends, is proving to be a major asset. AI’s calculated, emotion-free approach to investing stands in stark contrast to human tendencies to react to market fluctuations emotionally.

As for crypto, Intelligent Alpha’s focus remains minimal, primarily due to the limited data available for a robust analysis of the crypto space. However, the potential for AI to create unique investment strategies for crypto projects remains an exciting frontier. The integration of platforms like Grok AI, which is fine-tuned with social media data, could offer new ways for Intelligent Alpha to spot breakout cryptocurrency opportunities.

Despite some setbacks, the track record so far has been impressive. And with AI continuing to refine its methods, Intelligent Alpha aims to stay ahead of the curve in global market analysis, bringing AI-driven portfolio management to the forefront.