Chinese quant hedge fund managers redouble AI bets amid ChatGPT frenzy

Chinese quant hedge fund managers are rushing to explore ChatGPT-style tools, embracing the emerging artificial intelligence AI technology that has sparked a global frenzy since the release of the widely popular Microsoft-backed OpenAI chatbot.

Quants’ focus on advanced AI to aid decision-making comes amid a tough investment environment, as China’s post-Covid-19 recovery wanes and competition rises in the country’s 20 trillion yuan ($3 trillion) private fund industry.

“ChatGPT is an epoch-making application … It can draw conclusions from a complicated network of relationships with numerous dimensions in ways human brains cannot,” said Steve Chen, partner of Shanghai-based MX Capital. “Exploring its ability is now our main focus.”