Cathie Wood's Ark Invest, a prominent investor in the crypto and AI space, has announced its investment in OpenAI, the company behind the popular chatbot ChatGPT. Ark Invest's venture fund, Ark Venture, has invested nearly 4% of its assets under management (AUM) in OpenAI, which is valued at $54 million.

Ark Invest's Confidence in OpenAI

Ark Invest, a tech-focused asset manager, has disclosed its investment in OpenAI, a pioneer in the rapidly growing field of artificial intelligence. The company's Chief Futurist and investment committee member, Brett Winton, expressed Ark Invest's confidence in OpenAI's potential, stating that the company is making faster progress than anticipated. Winton also highlighted the significant market capitalization that foundation model-type companies, such as OpenAI, could command by 2030, estimated at $16 trillion.

OpenAI's Innovation

OpenAI has been at the forefront of AI innovation, introducing a powerful new text-to-video generative AI tool, Sora. The Sora model has been praised for its impressive capabilities, and Winton described the acceleration in the pace of innovation as "mind-blowing." Ark Invest's venture fund has allocated 4% of its total holdings to OpenAI, reflecting its confidence in the company's future potential.

Ark Invest's Diversified Portfolio

Ark Invest's venture fund, Ark Venture, is a closed-end investment vehicle that invests in both public and private companies. The fund's portfolio includes notable entities such as SpaceX, Epic Games Inc., Freenome Holdings Inc., and Relation Therapeutics. In addition to OpenAI, Ark Invest has also invested in OpenAI rival Anthropic, with nearly 5% of the fund's exposure towards it.

Despite facing challenges this year due to a downturn in Tesla's share price, Ark Invest has been doubling down its position on Tesla, making the most of the recent fall. The fund primarily comprises private companies, with around 80% of its total holdings in the venture fund. Winton emphasized the importance of daily updating of asset values to ensure fairness for everyday investors in Ark's products.