Positive Reviews for Video Production AI Model 'Sora'
Attention on AI Tech Stocks with Investments in Competitors
Cash Wood, CEO of ARK Investment, known domestically as the so-called 'Money Tree Sister,' has faced consecutive setbacks, but it has been reported that she invested in OpenAI, the creator of 'ChatGPT.'
On the 11th (local time), major foreign media including Bloomberg reported that ARK Investment announced in a letter to its clients that "as of April 10, 2024, the ARK Venture Fund will invest in OpenAI through a $54 million (approximately 74.412 billion KRW) venture capital (VC) fund." The company explained, "OpenAI stands at the forefront of the Cambrian explosion of artificial intelligence (AI) capabilities."
Launched in September 2022, the ARK Venture Fund has invested in companies such as SpaceX, led by Tesla CEO Elon Musk, Epic Games, Prenom Holdings, and Relation Therapeutics. The ARK Venture Fund did not disclose detailed reasons for investing in OpenAI. However, Brett Winton, ARK Investment's Chief Investment Officer, described OpenAI's recently released video production AI model 'Sora' as "very shocking," adding, "The accelerating pace of innovation is astonishing, and that is why we invested." He further stated, "The development of foundation models, which are the basis of AI learning, has progressed faster than we expected," and added, "By 2030, companies creating foundation models will lead the market, with the expected market value reaching $16 trillion." OpenAI accounts for 4% of the portfolio companies invested in by the ARK Venture Fund, while OpenAI's competitor Anthropic accounts for 5%.
ARK Investment's famous exchange-traded fund (ETF), the 'ARK Invest ETF,' gained fame by making bold investments in Tesla and others during the height of the COVID-19 pandemic. However, after the demand for electric vehicles slowed and Tesla's stock price plummeted, and recently by not investing in Nvidia, some of its reputation has been tarnished.
Meanwhile, OpenAI, which has raised massive investment funds from big tech companies, also secured most of its founding capital, $13 billion, from Microsoft (MS).
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