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Cathie Wood Bets Big on Elon Musk’s Latest AI Venture

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Cathie Wood has bet on xAI, an artificial intelligence (AI) startup founded by Elon Musk. She has also invested in other AI startups, such as Anthropic and Open AI.

According to the Ark Invest website, the firm, led by Cathie Wood, invested in xAI through its venture fund on the 29th, securing about 2% of xAI’s shares.

Recently, xAI successfully attracted a $6 billion investment. Key investors included prominent Silicon Valley venture capitals such as Andreessen Horowitz, Sequoia Capital, and Fidelity Investments. Prince Alwaleed bin Talal of Saudi Arabia also contributed to and funded the project.

xAI has been rapidly advancing its AI model performance since its establishment in July last year, from the release of Grok-1 on X (formerly Twitter) to the Grok-1.5 model with long-context understanding features and the Grok-1.5V with image recognition capabilities. Ark Invest is known to hold 5% of Anthropic’s shares. Anthropic is a startup founded in 2021 by Daniela and Dario Amodei, who were part of the founding group of OpenAI. Google and Amazon each invested $2 billion and $4 billion, respectively. Over the past year, they closed five different funding deals worth about $7.3 billion.

Cathie Wood was born in 1955 and majored in economics at the University of Southern California. After working as an economist at the Capital Group, she was the CIO at AllianceBernstein for 12 years. She founded Ark Invest in 2014.

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