The Ark Venture Fund has revealed that it has allocated approximately 4% of its assets under management (AUM) towards OpenAI.
Cathie Wood’s Ark Investment has been actively wagering on the crypto and AI space, and it disclosed its holdings in ChatGPT’s parent company, OpenAI, in its most recent filing.
ARK Invest’s OpenAI Investment Disclosure
On Thursday, April 10, Ark Invest disclosed to its clients that Ark Venture fund, a $54 million venture capital fund, had invested in OpenAI.
The tech-focused asset manager characterized OpenAI as a trailblazer in the swiftly growing domain of artificial intelligence capability and conveyed its unwavering belief in the organization’s prospects.
Incorporated in September 2022, the Ark fund functions as a closed-end investment vehicle, undertaking investments in publicly traded and privately held corporations.
Its portfolio includes SpaceX, under the leadership of Elon Musk, Relation Therapeutics, Epic Games Inc., and Freenome Holdings Inc.
Brett Winton, chief futurist and investment committee member of Ark, stated the following in an interview with Bloomberg:
“Our fund is relatively new and small and for us, honestly, the incremental progress in the foundation model space has been quicker than even we had anticipated. We think that there’s $16 trillion in prospective market cap that will be commanded by foundation model-type companies by 2030.”
Betting on the ‘Sora Model’
OpenAI has consistently propelled the forefront of innovation with the launch of Sora, a potent new text-to-video generative artificial intelligence tool.
Speaking on this development, Winton said: “The Sora model is mind-blowing. The acceleration in the pace of innovation is mind-blowing, and so we wanted the exposure.”
In addition, he added that OpenAI comprises 4% of the total holdings of the Ark Venture fund.
Interestingly, Ark Invest has allocated approximately 5% of the fund’s exposure to Anthropic, a competitor of OpenAI.
One of Wood’s most esteemed investment vehicles, Ark Innovation ETF, garnered extensive media coverage during the pandemic due to its significant holdings in companies such as Tesla Inc.
However, the ETF has encountered difficulties this year due to Tesla’s share price decline.
Even so, Ark Invest has been increasing its stake in Tesla to capitalize on the recent decline.
Furthermore, the venture fund accounts for approximately 80% of the fund’s total holdings and consists primarily of private corporations.
Winton underscored the significance of punctual asset value updates to guarantee equity for average investors in Ark’s product.
