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“OpenAI is at the forefront of a Cambrian explosion in artificial intelligence capability,” Ark said in the email about the new investment. The fund made its investment in OpenAI on April 10, 2024.
Ark’s $54 million venture fund aims to democratize venture capital, granting all investors access to innovative companies across their lifecycle in both private and public markets. In addition to its new investment in OpenAI, the fund holds positions in private companies like Epic Games, SpaceX, and Databricks, among others.
OpenAI, which counts Microsoft Corporation (NASDAQ:MSFT) as a significant investor, recently provided an opportunity for some employees to sell shares at an $86 billion valuation. It is unclear if Ark bought shares related to that transaction, although Bloomberg News relayed that the firm invested in OpenAI through a special-purpose vehicle.
Ark Chief Futurist and investment committee member Brett Winton told Bloomberg News that OpenAI represents 4% of Ark Venture’s holdings.
Winton praised OpenAI’s text-to-video generative AI tool, Sora, calling the technology “mind blowing.”
“The acceleration in the pace of innovation is mind-blowing and so we wanted the exposure,” Winton told Bloomberg News.
The Ark venture fund also owns a 5% stake in OpenAI rival Anthropic. Nearly 80% of the venture fund’s investments are in privately held companies.
