Ark Invest, led by Cathie Wood, has announced its stake in OpenAI, allocating around 4% of its Assets Under Management (AUM) to the prominent AI company.

The recent disclosure from Ark Invest on April 10 highlighted the investment made by its Ark Venture Fund, valued at $54 million, in OpenAI – a notable player in the expanding field of artificial intelligence. The tech-centric asset manager expressed confidence in OpenAI's pioneering work in AI capabilities.

The Ark Venture Fund, established in September 2022, operates as an investment vehicle for both public and private companies, holding shares in renowned entities like SpaceX, Epic Games Inc., and others. Brett Winton, Ark's Chief Futurist, discussed the fund's focus on innovative companies driving progress in the AI and technology sector, projecting a significant market cap growth by 2030.

OpenAI's recent advancements include the introduction of Sora, a cutting-edge text-to-video generative AI tool. Winton praised the Sora model for its innovative approach, leading Ark Venture Fund to allocate 4% of its investments to OpenAI. Notably, Ark Invest has also invested in Anthropic, a competitor of OpenAI, with a substantial exposure of almost 5%.

While Ark's Innovation ETF garnered attention for its investments in Tesla during the pandemic, recent challenges due to Tesla's market performance have prompted strategic decisions by the fund managers. Despite market fluctuations, Ark Invest remains dedicated to maximizing opportunities and ensuring the value of its investments for all stakeholders in the fund.