Artificial Intelligence extends sway to stock picking

Hodjat, with 21 patents to his name, is co-founder and top scientist of Sentient Technologies Inc., a start-up that has spent nearly a decade -- largely in secret -- training an AI system that can scour billions of pieces of data, spot trends, adapt as it learns and make money trading stocks. The team of technology-industry vets is betting that software responsible for teaching computers to drive cars, beat the world's best poker players and translate languages will give their hedge fund an edge on Wall Street pros. The walls of Sentient's San Francisco office are dotted with posters for robots-come-alive movies such as "Terminator". Two guys are quietly monitoring the machine's trades -- just in case the system needs to be shut down. "If all hell breaks loose," Hodjat says, "there is a red button."