| Reuters/Yonhap News |
Cathie Wood, CEO of Ark Invest, also known as “Money Tree Sister” in South Korea, revealed that she owns shares in OpenAI, the developer of ChatGPT.
According to Bloomberg on the 11th (local time), Wood wrote in a letter to investors the previous day, “As of the 10th, the Ark Venture Fund is invested in OpenAI,” and added, “OpenAI is at the forefront of the ‘Cambrian explosion’ of AI capabilities.”
The Ark Venture Fund, launched in September 2022, is a closed venture capital (VC) fund of Ark Invest with a size of about $54 million. OpenAI reportedly accounts for 4% of the entire Ark Venture Fund portfolio. The Ark Venture Fund also holds shares in Anserpic, a rival to OpenAI. In addition, it holds shares in SpaceX, led by Elon Musk, CEO of Tesla, game developer Epic Games, Relay Therapeutics, and biotech venture Preome Holdings.
However, the Ark Venture Fund did not elaborate on how it came to invest in OpenAI. OpenAI has attracted massive funding from giant tech companies, with Microsoft Corporation investing $13 billion. OpenAI has also allowed some employees to publicly sell shares worth $86 billion. Brett Winton, an investment committee member at Ark Invest, described OpenAI’s recently unveiled video-making AI model, ‘Sora,’ as “very shocking,” adding, “I’m amazed at the accelerating pace of innovation, which is why we invested.”
The Ark Invest ETF, a famous exchange-traded fund (ETF) of Ark Invest, gained fame after making a significant investment in Tesla during the height of the COVID-19 pandemic. However, it took a big hit when the demand for electric cars slowed, and Tesla’s stock price plummeted.
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