Sinead O’Sullivan, former Harvard researcher, explains that quant funds are not simply software firms. The Kelly Criterion, used in poker, teaches that betting should match edge, not pot size—an idea Jim Simons applied to Renaissance Technologies, capping Medallion at $10bn.

Equi Libre, a Prague‑based AI lab, partnered with Tower Research Capital and trades billions across S&P 500 and Nasdaq, boasting a perfect record of zero negative months. CEO Martin Schmid says the lab is a "lab first, not a finance firm," arguing that trading is just one vertical.

VC Creandum invested $500mn in Equi Libre, seeing it as a factory that continually produces new edges rather than a single strategy. Sellers notes that software has economies of scale, while trading suffers diseconomies—each dollar traded taxes itself.

The article argues that while quant funds resemble tech companies, their value erodes with scale, unlike networked software products. It questions whether AI can sustain long‑term edge in a market that self‑corrects.