From Fortune Magazine: 2024-04-12 15:01:00

Cathie Wood’s Ark Investment Management has invested in OpenAI, a leading player in artificial intelligence, through its $54 million VC fund. The company believes there is huge potential in AI, with a projected market cap of $16 trillion by 2030. OpenAI has received major funding from Microsoft, valuing the company at $86 billion.

Ark also holds a stake in rival Anthropic, with private companies making up 80% of its venture fund. The value of its assets are updated daily to provide transparency to investors. The firm is impressed with OpenAI’s Sora model and its text-to-video generative AI tool, despite concerns over its corporate governance structure.

Despite potential risks, Winton believes in the benefits of AI, comparing it to nuclear power regulation in the 1970s. He emphasizes the need to balance risk with innovation to prevent missing out on valuable technologies. Wood’s Ark Innovation ETF, known for bets on companies like Tesla, has seen some challenges lately.



Read more at Fortune Magazine: Cathie Wood discloses OpenAI stake, saying it’s ‘at the forefront of a Cambrian explosion in artificial intelligence capability’