Cathie Wood Says There’s One Common Thread When it Comes to AI Stocks in Her Firm’s Portfolio

Artificial intelligence is becoming a powerful force, not just in what it can accomplish, but in how it is impacting companies, employees and investors across the board. 

In the wake of mass, AI-driven layoffs at companies from BuzzFeed  (BZFD) – Get Free Report to IBM  (IBM) – Get Free Report, Cathie Wood, the CEO and investment manager of Ark Invest, said AI — if properly handled — could be huge.

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Speaking in the latest episode of her ‘In The Know’ podcast, Wood discussed the ongoing banking crisis, the Fed’s lackluster response and AI.

“It seems like they’re going to be subjected to commoditization very quickly,” Wood said of generative AI models such as OpenAI’s ChatGPT. Even as users and academic researchers want to keep these models open, generative AI — including ChatGPT — is already starting to charge, Wood said. “We’re seeing resistance to that and others shifting to [free] models that are, from a competitive point of view, coming quickly, fast and furiously.”

Amid this rising landscape of extreme competition between the different AI developers, Wood said that “the winners” will be “those that have the most sophisticated domain expertise, the best AI expertise and critically proprietary data that no one else has.”

Wood believes that Ark has identified and invested in those so-called “winners.” 

“This is a very big moment,” she said. “It’s critical that we watch our companies. And if you look at our portfolios, those companies have proprietary data that no one else has. And we think that they have the technological sophistication and the domain expertise to capitalize on that data in a way that no one else can.” 

Ark dropped more than 500,000 shares of Shopify on Friday. 

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