Cathie Wood, a prominent figure in the investment world and the CEO of Ark Invest, has earned the moniker “Money Tree Sister” in South Korea, where her astute investment strategies have garnered significant attention. Recently, Wood made waves by revealing that Ark Invest holds shares in OpenAI, a groundbreaking developer renowned for its innovative AI technologies, including ChatGPT.
In a letter addressed to investors, Wood disclosed that the Ark Venture Fund, one of Ark Invest’s flagship investment vehicles, had initiated a position in OpenAI. This move underscores Wood’s confidence in OpenAI’s pivotal role at the forefront of the AI revolution, likening its significance to the “Cambrian explosion” of AI capabilities—a metaphorical nod to the rapid diversification and advancement observed during the Cambrian period in evolutionary history.
Established in September 2022, the Ark Venture Fund operates as a closed venture capital (VC) fund within Ark Invest, boasting a substantial size of approximately $54 million. OpenAI’s shares constitute a noteworthy portion, around 4%, of the fund’s diversified portfolio. Alongside OpenAI, the Ark Venture Fund holds stakes in a diverse range of ventures, including Anserpic, a competitor to OpenAI, as well as high-profile entities like SpaceX, Epic Games, Relay Therapeutics, and Preome Holdings—a biotech venture.
Despite the revelation of Ark Invest’s investment in OpenAI, the specifics surrounding the decision-making process remain undisclosed. However, OpenAI has attracted substantial funding from industry behemoths, with Microsoft Corporation notably investing a staggering $13 billion. Furthermore, OpenAI’s progressive approach has enabled select employees to publicly sell shares valued at an impressive $86 billion. Brett Winton, a key member of Ark Invest’s investment committee, lauded OpenAI’s groundbreaking AI model, ‘Sora,’ expressing awe at the accelerating pace of innovation that influenced their investment decision.
Ark Invest gained widespread recognition for its Exchange-Traded Fund (ETF), particularly for its bold investment in Tesla during the peak of the COVID-19 pandemic. However, the fund encountered challenges when demand for electric vehicles experienced a downturn, resulting in Tesla’s stock price decline.
Wood’s strategic move to invest in OpenAI underscores Ark Invest’s commitment to identifying and supporting transformative technologies with the potential to reshape industries. As the AI landscape continues to evolve, Ark Invest’s involvement with OpenAI positions it as a leading player in driving innovation in artificial intelligence and shaping the future of technology-enabled investment strategies.