Cathie Wood discusses Musk, Trump, DeepSeek, and Bitcoin

Cathie Wood, founder and CEO of ARK Invest, shared insights on various topics in her recent report, “Big Ideas for 2025.” One of the most significant convictions highlighted in the report was artificial intelligence (AI). When the Chinese company DeepSeek introduced its more affordable AI technology, it caused a stir in the market.

Wood pointed out that DeepSeek’s AI model is reducing costs associated with this cutting-edge technology as quickly as other leading companies like OpenAI and Anthropic. The costs of developing inference models are dropping by 85% to 95% per year. However, there are questions surrounding the actual development cost of DeepSeek’s model, as it was priced at $6 million compared to significantly higher costs from competitors.

In terms of investment strategy, Wood emphasized the importance of software and embodied AI. Companies like Nvidia and TSM are still integral to ARK’s portfolio due to their role in hardware production. Additionally, they are increasing their exposure to software companies such as Palantir and embodied AI companies like Tesla.

Wood highlighted the healthcare sector as a promising area for AI applications. The convergence of sequencing technologies, AI, and Crispr gene editing is showing potential in curing diseases and extending human longevity. While autonomous mobility may present lucrative revenue opportunities in the next decade, the impact of AI in healthcare could be significantly transformative.

Regarding electric vehicles (EVs), Wood acknowledged the challenges they face, including macroeconomic factors affecting all types of vehicles. Despite lower-than-expected sales, there is a noticeable shift towards electric and hybrid vehicles globally. As costs associated with EVs decline, companies like Tesla are expected to introduce more affordable options, such as an anticipated $25,000 car.

Wood remains optimistic about the future of AI, EVs, and other innovative technologies. The developments in these sectors have the potential to revolutionize various industries and bring about significant advancements in healthcare and mobility. As technology continues to evolve, ARK Invest is positioning itself to capitalize on these opportunities and drive growth in its portfolios.