Cathie Wood’s ARK Invest purchased a stake in Elon Musk’s startup xAI Tech as she is expanding on her bet toward AI.
This Sunday, ARK Venture Fund has placed its bet on xAI since St. Petersburg, Florida-based asset manager announced its investment in it in an email to its clients on Tuesday evening. It also invests in OpenAI and other players of NT that are prominent now, such as Figure AI and Shield AI.
Such a type of company is not that unique to Musk though, as Wood’s venture fund also invests in the xAI startup. The firm has also investing in Elon Musk’s space exploration company SpaceX and communication company X Corp. which used to be Twitter.
It was created in September of 2022 and is mainly oriented to attracting small investors who are willing to invest in venture capital with as little as $500.
The actors of this fund have put nearly 50 million dollars and it has stakes in almost 50 businesses and most of them are immature. It has a high management fee of 2. 75% meaning that it will cost you a lot of money to manage.
xAI was established in March 2023 with Musk as its founder, and aims to compete with OpenAI which is backed with hundreds of millions of dollars from Microsoft, and Google under the Alphabet holding. Musk also co-founded OpenAI. It has recently closed Series B funding of $6 billion which set this company post-money valuation of $24 billion. X has claimed that the startup wants to develop a new and improved version of Grok, its AI chatbot that would require a supercomputer to operate.
One of the most popular Wood has confessed that he has been boiling in AI as a major disrupter of his/her innovation strategy everywhere.
He has referred to Tesla as the biggest AI playthrough its robotaxi plan she has pointed at Tesla as the biggest AI opportunity in the world She has also said that his flagship ARK Innovation Fund has Tesla as its largest position with the largest weighting at 11. 5%.
Wood also commented that OpenAI is “at the cutting edge of what he has described as a Cambrian explosion in the capability of artificial intelligence. ”
