From Fortune: 2024-04-11 22:10:00

Cathie Wood’s Ark Investment Management invests in OpenAI, banking on AI to reshape tech. Ark holds stake in OpenAI via a $54 million VC fund, with high hopes on AI’s capabilities. The Ark Venture Fund, launched in 2022, also invests in other companies like SpaceX and Epic Games.

OpenAI has received substantial funding, mainly from Microsoft, with a $13 billion investment. Ark holds a stake in the company through a special purpose vehicle. OpenAI remains silent on the matter. The startup represents about 4% of Ark’s venture fund holdings and is estimated to be $86 billion in valuation.

Ark Innovation ETF, Wood’s renowned fund, soared during the pandemic but faced challenges this year due to Tesla’s stock decline. The venture fund primarily consists of private companies, with daily asset value updates for investors. Winton praises OpenAI’s Sora model, emphasizing the need for exposure to AI innovation despite risks.

Winton acknowledges the risks tied to OpenAI’s unconventional governance structure but emphasizes the potential benefits outweigh the risks. He draws comparisons to past technologies like nuclear power facing regulatory hurdles in the ’70s. Winton urges caution not to hinder AI’s benefits amid concerns.



Read more at Fortune: Tesla bull Cathie Wood’s $54 million Ark Venture Fund invests in Sam Altman-led OpenAI, and Elon Musk sued both last month