Bridgewater Trains AI to Think Like an Investor
The hedge fund, working with Thinking Machines, says a fine-tuned AI model outperformed leading LLMs on internal investment research tasks.
Hey, I’m Matt. I’m a former Bloomberg News reporter, and you’re reading AI Street, where I report on how Wall Street uses AI.
The way hedge funds use AI fits into two broad buckets.
One way is to train an AI model on market data. In other words, instead of training one on language, you gather all the financial market data you can get your hands on, train the model—not to predict the next word—but the next market event. This is hard and expensive. Firms like Hudson River Trading and XTX are spending billions of dollars to build their own data centers. (And in the case of HRT, putting out movie-quality videos of their GPU clusters deep inside a Norwegian mountain.)