Artificial intelligence-focused fintech group Qraft Technologies Inc. said it has received a $146 million investment from Japanese conglomerate SoftBank Group Corp. (OTC: SFTBY).
What Happened: The investment includes primary growth capital and secondary capital that will be used to fund share purchases from investors, Qraft said.
The South Korea-based startup expects the SoftBank investment to accelerate its ongoing expansions into the U.S. and China. The two parties will also work on developing AI-enabled public portfolio management systems for SoftBank.
Qraft CEO Marcus Kim said his company’s partnership with SoftBank marks the start of AI technology fundamentally changing the $100 trillion asset management industry.
Why It Matters: Qraft develops and operates deep learning-based algorithms that provide portfolio analysis to financial institutions.
The company has looked to demonstrate the performance of its proprietary AI engine throughout its exchange-traded funds (ETFs) listed on the New York Stock Exchange.
The Qraft AI-Enhanced US Large Cap Momentum ETF (NYSE: AMOM) became popular over accurately predicting the price movements of electric vehicle maker Tesla Inc.’s (NASDAQ: TSLA) shares in multiple instances.
The ETF revealed in December that it had Tesla as its top holding during that month.
Price Action: AMOM shares closed almost 3.6% lower in Thursday’s regular trading session at $32.07 and further lost 2.5% in the after-hours session to $31.49.
SoftBank’s shares closed almost 3.2% lower in the regular trading session at $24.05.
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