Cathie Wood's ARK Sees $200 Trillion Potential For Disruptive Innovation Market — With AI As 'Most Important' Catalyst

Cathie Wood’s ARK has stated that the market value of disruptive innovation platforms could scale 40% annually during this business cycle, from $13 trillion today to $200 trillion by 2030. In 2030, the market value associated with disruptive innovation could account for the majority of the global equity market capitalization, it stated.

Brett Winton, Chief Futurist and ARK Venture Investment Committee Member, noted in his research that artificial intelligence is the most important catalyst, its velocity cascading through all other technologies.

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He named five converging innovation platforms that define this technological era: Public Blockchains, Artificial Intelligence, Multiomic Sequencing, Energy Storage and Robotics.

The converging innovation platforms involve 14 investable technologies undergoing steep cost declines, impacting multiple sectors, and serving as launching pads for more innovation, Winton wrote.

On Robotaxis: ARK said the pace of AI innovation has increased its confidence in the commercial viability of robotaxis and other autonomous mobility systems.

“Neural networks are beginning to exceed human performance in multiple areas. Autonomous transportation should prove no different. Performance improvements in neural networks should enable scalable robotaxi systems that are safer than humans in almost all situations,” it said.

It is widely known that Wood is a big Tesla Inc TSLA bull and her fund has stuck with the stock during its worst rout in history. “Tesla applies transformer neural networks—introduced as a solution for language translation—to help its vehicles understand complicated intersections and drivable pathways,” ARK stated.

Talking about battery capacity, ARK noted that improvements in battery capacity and energy density will be critical to advances in intelligent devices.

Satellite Connectivity: It pointed out that satellite connectivity providers like Iridium Communications Inc IRDM and Starlink have made worldwide connectivity a reality by taking advantage of the cost declines in reusable rockets. Iridium Communications is the second largest holding in the ARK Space Exploration & Innovation ETF ARKX.

“The cost of satellite bandwidth has fallen 7,500-fold over 19 years, enabling the launch of a record number of communication satellites in 2022,” it said.

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