SCOPE to Close Dollar 2 Billion NXT-GEN FUND I, Targeting a Dollar 20 Billion Value Creation in the Next 7-10 Years

GYF Trust Engaged in Structuring a $600 Million Tranche

National, 28th February 2025 – SCOPE, a leading investment platform, has announced plans to close its $2 billion investment fund—NXT-GEN FUND I—structured in the United States to capitalize on AI infrastructure and high-growth asymmetric opportunities. The fund aims to create $20 billion in value over the next decade, positioning itself as a key player in the AI-driven economic revolution. Final-stage discussions are underway, with key institutional investors, including GYF Trust, engaged in structuring a $600 million tranche. Additional details on participating investors will be shared soon.

AI Funds Are Underperforming—Here’s Why

Despite AI’s rapid expansion, many funds are struggling with misallocated capital, unrealistic valuations, and flawed investment theses. LPs have suffered heavy losses due to overhyped AI startups with unsustainable burn rates, while legacy funds continue to misprice AI-native infrastructure. According to Bain & Co., $2.59 trillion in dry powder remains untapped, yet capital deployment remains slow and inefficient.

In contrast, institutions that act now are reaping the benefits. In just two weeks, $11.4 billion was deployed into AI automation and synthetic data, demonstrating strong market confidence. Additionally, 1,245 AI-related deals were closed globally, signaling an accelerating market entry. Leading investment firms have pivoted towards AI-driven strategies, validating AI’s asymmetric return potential and reinforcing the need for strategic investment in this sector.

What LPs Need to Fix—and How SCOPE is Doing It Right

To capture AI’s real growth potential, LPs must shift away from hype-driven bets and instead focus on AI infrastructure over startups, as compute, synthetic data, and automation outperform speculative AI applications. Long-term AI investments must be structured for sustainable growth, emphasizing scalability and capital efficiency. Additionally, asymmetric positioning is essential to capture AI’s economic shift before valuations skyrocket further.

SCOPE’s NXT-GEN FUND I is designed precisely for this first-mover advantage, with targeted exposure in synthetic training data and model efficiency to overcome AI’s scaling bottlenecks. It also focuses on physical AI, including autonomous systems, robotics, and edge AI, which represent the next trillion-dollar AI revolution. Furthermore, the fund is investing in gaming AI and AGI testbeds, driving the future of decision intelligence. The AI infrastructure boom is another critical area, where compute efficiency is outpacing Moore’s Law by eight times, reshaping model economics and leading to massive capital inflows as AI-driven assets experience exponential repricing.

“AI’s growth trajectory is clear—what matters now is strategic capital allocation,” said Appalla Saikiran, Founder & CEO, SCOPE. “Most funds are getting it wrong by chasing unsustainable models. NXT-GEN FUND I is built for institutional investors who want exposure to AI’s core infrastructure—where the real value is being created.”