TLDR
- Cathie Wood from Ark Invest says humanoid robots represent the biggest opportunity in embodied artificial intelligence technology
- Tesla’s Optimus robot distributed candy to crowds in Times Square while plugged into a power source during Monday’s demonstration
- Elon Musk projects Optimus will comprise 80% of Tesla’s company value and potentially generate $10 trillion in revenue
- Wood’s investment portfolio includes Tesla (9.16%), Palantir (7.02%), and AMD (6.14%) as top holdings in AI and robotics
- Tesla has shifted Optimus training from teleoperation methods to vision-based learning using recorded task videos
Cathie Wood, CEO of Ark Invest, identified humanoid robots as the most valuable opportunity in artificial intelligence during comments at the Future Investment Initiative in Riyadh. Wood placed humanoid machines above autonomous vehicles and healthcare AI in terms of market potential.
“I think that is going to be the biggest of all the embodied AI opportunities,” Wood stated in her CNBC interview. She referenced humanoid robots as the “chaser” following other AI applications.
The timing of Wood’s statements coincided with Tesla’s public showcase of its Optimus humanoid robot. Tesla brought the robot to New York City’s Times Square on Monday for a Halloween-themed event. Optimus handed out candy bags near the Nasdaq building while tethered to a power connection.
Video recordings captured Optimus distributing red and yellow bags containing gummies to pedestrians. The robot occasionally dropped bags but retrieved them from the ground. Rebecca Quick from CNBC witnessed the demonstration and confirmed these details.
Tesla also displayed its Cybercab autonomous vehicle at the same location. The vehicle operates without a steering wheel or pedals and remains in pre-production stages.
Development Progress and Autonomy Questions
Tesla has presented Optimus at several public events this year. The robot appeared at Tesla’s employee “Frunk or Treat” celebration and the “Tron: Ares” movie premiere in October.
Questions about Optimus autonomy levels have emerged from these demonstrations. At Tesla’s 2024 “We Robot” event, multiple Optimus units worked as bartenders. Morgan Stanley analysts confirmed those robots relied on human teleoperation rather than independent function.
Business Insider reported in June that Tesla modified its training methodology. The company moved away from motion capture suits and virtual reality headsets. The new approach uses video recordings of workers completing tasks to train the robot’s systems.
Elon Musk discussed autonomy during Tesla’s third-quarter earnings call. He claimed the Optimus at the “Tron: Ares” premiere operated without human control. “Nobody was controlling it, it was just doing Kung Fu with Jared Leto,” Musk explained.
Tesla board chair Robyn Denholm mentioned observing Optimus fold laundry in company labs during her CNBC interview.
Financial Projections and Investment Strategy
Elon Musk has shared ambitious revenue predictions for the Optimus program. He stated in September that Optimus would eventually account for 80% of Tesla’s total valuation. Previous comments suggested potential revenue exceeding $10 trillion.
“Optimus at scale is the infinite money glitch,” Musk said on the earnings call. “There is not really a limit to AI that is embodied.”
Wood manages the ARK Artificial Intelligence & Robotics ETF with concentrated positions in robotics companies. Tesla represents the largest holding at 9.16%. Palantir and AMD comprise the second and third largest positions.
Cathie Wood discussed enterprise AI adoption timelines during her interview. She said major corporations need significant restructuring before capturing AI productivity benefits. Wood specifically mentioned Palantir’s role in transforming large organizations for AI integration.
Consumer Market and Productivity Gains
Consumer AI applications may arrive before widespread enterprise adoption. Wood expressed enthusiasm about AI personal assistants managing tasks like shopping. She reported AI tools have already enhanced her research efficiency.
Wood cautioned about potential short-term volatility in AI investments. She mentioned the possibility of a “reality check” as markets adjust expectations. Despite this warning, Wood defended current technology company valuations over a five-year timeframe.
Wood highlighted consumer enthusiasm for AI technologies. “In the consumer space, the consumer loves all of this,” she said. She anticipates personal productivity increases as AI assistants become more capable.
The Times Square event marked another step in Tesla’s public relations campaign for Optimus and autonomous vehicle technology.
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