Intelligent Alpha is a $30 million investment fund where artificial intelligence (AI) fully takes on the role of making investment decisions. The company, founded and operated by Doug Clinton, uses a trio of AI – ChatGPT (OpenAI), Gemini (Google), and Claude (Anthropic) – as an investment committee to build and oversee portfolios.
AI at Intelligent Alpha has made successful investment decisions, such as shorting Boeing stock before the 737 MAX incident. Although focused on traditional finance, the company has begun experimenting with Bitcoin over the past year, predicting that if conditions are favorable, the value of Bitcoin could reach $140,000.
"In the event of a price increase – Trump's victory and a more favorable regulatory environment – AI has predicted that the price of Bitcoin could rise to $140,000. That might be the scenario we are heading towards right now."
The fund's investment process is quite simple: first, AI collects data on large companies and creates a portfolio based on the philosophies of famous investors like Warren Buffett and Stanley Druckenmiller. Then, humans review the AI's decisions to ensure reasonableness and avoid errors. AI not only selects stocks but also explains the reasoning behind each decision, helping to ensure that investments align with the fund's long-term goals.
Although it is common for AIs to disagree with each other, these differences actually help create a balanced and risk-hedged portfolio. One notable success is that AI selected Nvidia in the summer of 2023, and its stock has increased by about 400% since being chosen.
The Intelligent Livermore ETF fund, launched in September, is a product developed from Intelligent Alpha's AI strategy, using AI to build a global stock portfolio based on forecasts of macro events and areas of opportunity.
Although AI has not focused much on cryptocurrency due to a lack of data and difficulties in building investment strategies based on public information from platforms like X, Clinton said they are exploring the possibility of using AI to detect potential cryptocurrency projects in the future.
