Cathie Wood Funds Buy Shares Of OpenAI As Its Valuation Grows Again

• ARK Innovation, ARK Next Generation Internet, and ARK Blockchain & Fintech ETFs now hold OpenAI as their 13th largest position, with holdings valued at approximately $175 million, $43 million, and $122 million respectively
• OpenAI raised $122 billion in its latest funding round at an $852 billion valuation, with participants including BlackRock, Amazon, Nvidia, Microsoft, and for the first time, individual investors through bank channels
• The company is generating $2 billion per month in revenue and claims to be growing four times faster than companies that defined the Internet and mobile eras like Alphabet and Meta

Summary: Cathie Wood's ARK Funds Add OpenAI Exposure

Key Developments:

Three ARK Invest ETFs—ARK Innovation (ARKK), ARK Next Generation Internet, and ARK Blockchain & Fintech—have allocated approximately 3% of their portfolios to OpenAI, marking the first opportunity for retail investors to gain exposure to the AI leader through public funds before its anticipated IPO.

Investment Details:

• OpenAI represents the 13th largest holding in ARK Innovation at approximately $175 million
• ARK Blockchain holds about $122 million in OpenAI
• ARK Next Generation Internet holds nearly $43 million
• ETF regulations permit funds to hold up to 15% in illiquid assets like private companies

OpenAI Valuation & Funding:

• Latest funding round valued OpenAI at $852 billion
• Total funding raised: $122 billion
• Current revenue: $2 billion per month
• Company claims revenue growth "four times faster" than Alphabet and Meta during comparable stages

Other Investors:

Major institutional participants in the recent funding round included BlackRock, Blackstone, University of California, Amazon, Nvidia, SoftBank, and Microsoft. Individual investors also gained access through bank channels for the first time.

Market Context:

Cathie Wood stated OpenAI specifically sought partnerships with ARK funds to democratize ownership before a potential IPO expected in 2025 or 2026. This comes as ARK funds reduced other tech holdings during March's market correction, including positions in Alphabet and Nvidia, though they've since shown mixed trading activity.