Point72’s Chairman and CEO, Steve Cohen, recently reaffirmed his long-term optimistic outlook on artificial intelligence (AI) despite the recent market volatility. He shared his thoughts at the iConnections Global Alts conference, predicting that AI’s impact would revolutionize lives and businesses alike in the next 10-20 years.
Cohen believes we are in the initial stages of a transformative shift in the economy and the world due to AI. Ignoring this shift, he said, would be a huge mistake given its potential to completely change how we live and conduct business.
His comments came in the wake of a major disruption in U.S tech stocks caused by DeepSeek, a young Chinese AI startup. DeepSeek’s incredibly competitive models, created at a fraction of the usual cost, have challenged the AI narrative and caused a stir around Nvidia’s hyped chips.
Cohen, who is also the owner of the New York Mets, predicted the AI boom would have its highs and lows, and the lack of accurate information could amplify the volatility surrounding AI-related investments. He suggested that the journey of AI’s development and adoption would not be a straight line, but rather a series of progressive alternations between advancements and quiet periods.
The impact of DeepSeek’s entry into the market was felt by Nvidia, a key player in AI, whose shares plummeted 17%, wiping off almost $600 billion in market value. This was the largest single-day drop in value for a U.S. company. However, Nvidia’s shares recovered nearly 9% the following Tuesday.
In addition to his views on AI’s future, Cohen revealed that his firm plans to raise $1.5 billion for a new AI-focused hedge fund to leverage the AI boom. This move aligns with his firm’s optimistic view of AI’s potential in the coming years.
This information is especially useful for individuals interested in investing in AI-related ventures. However, the primary focus of this article is to keep readers informed about the latest developments in the AI industry, rather than to provide investment advice.
