Japanese Holdings Company Softbank announced that it will launch a fund that will allocate $108 billion towards artificial intelligence (AI) investing in companies that are developing the technology around the globe.
On its own behalf, Softbank is allocating $38 billion while the rest of the invested funds will come from other partners. Companies expected to take part in the fund include names like Apple, Microsoft, iPhone assembler Foxconn, Standard Chartered Bank, Japanese financial giants Mizuho Bank, Sumitomo Mitsui Banking Corporation and MUFG Bank.
“The power to predict the future is about to emerge,” SoftBank Chief Executive Masayoshi Son said. “The amount of data will grow by a million times over the next 30 years.”
The latest news comes after software giant Microsoft recently opened its wallet and gave OpenAI, a startup co-founded by Elon Musk, to support the goal of developing AI technology that can outdo human brain functioning. This generous investment could certainly put AI-focused exchange-traded funds (ETFs) in focus for investors looking to capitalize on the growing space of disruptive technologies.
“The creation of AGI will be the most important technological development in human history, with the potential to shape the trajectory of humanity,” says Sam Altman, CEO, OpenAI. “Our mission is to ensure that AGI technology benefits all of humanity, and we’re working with Microsoft to build the supercomputing foundation on which we’ll build AGI. We believe it’s crucial that AGI is deployed safely and securely and that its economic benefits are widely distributed. We are excited about how deeply Microsoft shares this vision.”
AI ETFs to Consider
In the investment space, AI is increasingly gaining widespread attention for its ability to be a disruptive technology that spans across a variety of sectors, which makes it a viable alternative for exchange-traded funds (ETFs) opportunities. For one ETF, the AI-Powered International Equity ETF (NYSEArca: AIIQ), it’s been a year since inception and has already bested its benchmark by 7 percent.
Under the hood, the fund runs on the EquBot Model: a proprietary algorithm with the use of IBM’s Watson. The model analyzes and compares a multitude of data points and international companies on a daily basis to find and optimize portfolio exposures.
AI continues to disrupt the investment management space, prompting many asset managers and investors to rethink the way they invest, research and develop portfolio construction methodologies. EquBot recognized this need for advancement and broke the mold by pioneering a new method combining AI with ETFs.
Another ETF to consider is the ARK Innovation ETF (NYSEArca: ARKK). ARKK is an actively-managed fund that invests in domestic and foreign equity securities of companies that are relevant to the fund’s investment theme of disruptive innovation.
AGI has the “potential to shape the trajectory of humanity,” said Altman. “Our mission is to ensure that AGI technology benefits all of humanity, and we’re working with Microsoft to build the supercomputing foundation on which we’ll build AGI. We believe it’s crucial that AGI is deployed safely and securely and that its economic benefits are widely distributed. We are excited about how deeply Microsoft shares this vision.”
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