Balyasny is building an AI Senior Analyst

FIRST PASS

Balyasny Asset Management is one step closer to building an AI Senior Analyst (BI)

Balyasny Asset Management's Applied AI team has created a new tool called Deep Research, designed to assist analysts and portfolio managers with stock research and assessing market event impacts.

Key points:

• Deep Research can process complex queries, scanning over 20,000 documents in about an hour.

• The tool aims to reduce research time "from days and weeks to minutes and hours."

• Balyasny has enhanced its AI models with financial literacy improving document retrieval accuracy by 60% compared to general-purpose models like OpenAI's.

• The tool utilizes a database of about 5 million documents, including SEC filings, earnings transcripts, and internal analyses.

Merlin’s Notes: These are the kinds of stories we’re excited about because they highlight use cases in which GenAI excels.

As investment managers continue to invest in AI capabilities, we may start to see a real shift in the competitive landscape favoring those with advanced AI tools.

For PE firms, this trend underscores the importance of:

1. Investing in AI-powered research tools to enhance due diligence and market analysis.

2. Considering the AI capabilities of potential portfolio companies as a factor in investment decisions.

3. Exploring partnerships or acquisitions to bolster internal capabilities.

OpenAI co-founder Sutskever's new AI startup raises $1B, valued at $5B (RT)

Safe Superintelligence (SSI), a new AI startup co-founded by former OpenAI chief scientist Ilya Sutskever, has secured $1 billion in funding just three months after its inception.

Key points:

• SSI aims to develop safe AI systems that surpass human capabilities.

• The company plans to use the funds for computing power and top talent acquisition.

• Investors include Andreessen Horowitz, Sequoia Capital, DST Global, and SV Angel.

• The startup is rumored to be valued at $5 billion.

Merlin’s Notes: Dotcom bubble, anyone? This massive funding round for a three-month-old startup underscores the continued high-stakes race in AI development but also reveals the extent to which investors are willing to bet on exceptional talent.

While a $1B bet on a 3-month-old startup seems extreme (and, frankly, it is), it could be good news for downstream AI adoption.

SSI's entry as another major player could help balance a field dominated by a handful of tech giants, potentially leading to more competition and choice in the market for AI models.

For PE, this development could mean:

1. Increased options for AI integration in portcos

2. Potential downward pressure on AI implementation costs in the long run

3. Opportunities to leverage multiple AI providers for different use cases

JARGON BUSTER

USE CASE SPOTLIGHT

Blackstone’s “next evolution” in GenAI

Blackstone, one of the world's largest investment firms, has developed DocAI, a generative AI tool designed to revolutionize how its employees access and utilize crucial information across the organization.

Key features of DocAI:

• Allows employees to upload and search through confidential deal information, macroeconomic research, and other critical documents

• Provides AI-powered summarization of specific information within these documents

• Curates information, ensuring only valuable and relevant content is included

Impact and use cases:

1. Deal research: Analysts and VPs in real estate and private equity use DocAI to research potential deals more efficiently

2. Legal and compliance: Teams use it to track and query credit covenants and mandates

3. IT operations: Software engineers utilize it to better understand system architectures and connections between systems.

The project, led by CTO John Stecher, has been in development for 10 months and is set for a full rollout to Blackstone's 5,000 employees this fall.

DocAI showcases how top PE firms leverage AI to create proprietary tools that enhance decision-making and operational efficiency. This approach allows firms to benefit from AI's capabilities while maintaining control over sensitive data.

TOOL OF THE WEEK

Synthesia

Synthesia is an AI-powered video creation platform that allows users to generate professional-looking videos featuring realistic AI avatars.

The tool has gained significant traction in various industries, including finance, for creating engaging content without the need for traditional video production resources.

Key features:

• AI avatars: Choose from a diverse range of lifelike digital presenters

• Text-to-speech: Convert written scripts into natural-sounding voiceovers in multiple languages

• Customization: Add backgrounds, logos, and other branding elements

• Templates: Pre-designed templates for various video types (e.g., product demos, training videos)