ARKK Needs To Turn AI Hype Into Profitability

Keen investors should note that AI has always been an underlying theme underpinning ARK's thesis (but not necessarily profitability). With $Microsoft(MSFT.US)$ investing a further $10B in OpenAI recently at a reported 100x projected revenue, it has also driven risk-on bets, as seen in the surge in ARKK.
ARK accentuated that the companies within its portfolio have a strong "proprietary AI" foundation, enabling them to capitalize on their data edge.
Why? Because ARK believes that over time, the cost of training complex AI models will drive down AI training costs by "70% at an annual rate through 2030."

$ARK Innovation ETF(ARKK.US)$ has outperformed the $S&P 500 Index(.SPX.US)$ recently, as AI-mania could surpass even the feverish Web3 excitement of 2021.Innovation is complex, but the hype does seem more real than the Web3 hype in 2021. With ARKK's companies in the early stages of their profitability ramp, we believe the hype is critical to lifting investors' sentiments. But, investors still need to separate hype from reality, as many AI-first companies might not move successfully to commercialization.