From Yahoo Finance.: 2024-04-12 13:00:11

Cathie Wood’s Ark Investment Management invests in OpenAI, citing potential in AI industry to reshape tech landscape. The $54 million VC fund also includes stakes in SpaceX, Epic Games, and more. Wood’s Ark Innovation ETF gained fame by betting on Tesla amid pandemic, though recent decline in Tesla’s share price has led to stumble.

OpenAI, backed by Microsoft, raised significant funds with $13 billion from Microsoft. Ark’s investment in OpenAI through a special purpose vehicle represents about 4% of its holdings. The Ark venture fund mainly consists of private companies, which are updated daily for fair valuation to investors. OpenAI’s text-to-video generative AI tool, Sora model, is a key innovation attracting investors.

Ark’s Chief Futurist Brett Winton acknowledges risks in OpenAI’s governance structure but sees potential benefits outweighing concerns. He highlights the need to embrace AI technology to avoid missing out on its advantages, comparing it to how regulatory burdens derailed nuclear power in the past. The pace of AI innovation is accelerating, with Ark keen on capturing exposure to these advancements.



Read more at Yahoo Finance.: Cathie Wood Muscles Into ChatGPT Boom With New OpenAI Stake