TLDR
- Ark Invest’s Cathie Wood told CNBC that humanoid robots will be the largest embodied AI opportunity ahead of robotaxis and healthcare applications
- Tesla displayed its Optimus robot in Times Square on Monday, where it distributed Halloween candy while connected to a power source
- Elon Musk claims Optimus will account for 80% of Tesla’s future valuation and could generate over $10 trillion in revenue at scale
- Wood’s investment fund holds Tesla at 9.16%, Palantir at 7.02%, and AMD at 6.14% as its top robotics and AI positions
- Previous Optimus demonstrations have used human teleoperation, though Tesla is transitioning to vision-based autonomous training methods
Cathie Wood, founder and CEO of Ark Invest, declared humanoid robots the biggest opportunity in artificial intelligence during an interview at Saudi Arabia’s Future Investment Initiative conference. Wood described AI-powered humanoid machines as surpassing other embodied AI applications including autonomous vehicles and medical technologies.
“I think the chaser is going to be humanoid robots,” Wood told CNBC. “And I think that is going to be the biggest of all the embodied AI opportunities.”
Wood’s remarks aligned with Tesla’s latest public demonstration of its Optimus humanoid robot. On Monday, Tesla brought two Optimus units to Times Square near the Nasdaq building. The robots handed out candy bags to New Yorkers as part of a Halloween promotion.
Footage from the event showed Optimus picking up small bags of gummies and distributing them to passersby. CNBC’s Rebecca Quick reported the robot occasionally dropped items but successfully retrieved them. Observers noted the robot remained plugged into a power source throughout the demonstration.
Tesla board chair Robyn Denholm discussed Optimus capabilities during the interview with Quick. “I’ve been in the lab with Optimus, and he can fold laundry,” Denholm said.
Tesla’s Robot Development Strategy
Tesla has showcased Optimus at multiple events in recent months. The robot previously distributed candy at the company’s “Frunk or Treat” employee celebration. In October, an Optimus unit appeared at the “Tron: Ares” film premiere.
Past demonstrations have raised questions about the robot’s autonomy level. At Tesla’s 2024 “We Robot” event, Optimus robots served drinks as bartenders. Morgan Stanley analysts later confirmed those units operated via teleoperation with human controllers.
Sources told Business Insider that Tesla changed its training approach in June. The company shifted from motion capture suits and VR headsets to a vision-based system. This method involves recording videos of human workers completing tasks to teach the robot.
Elon Musk addressed autonomy concerns on Tesla’s third-quarter earnings call. He stated the Optimus unit at the “Tron: Ares” premiere operated independently. “Nobody was controlling it, it was just doing Kung Fu with Jared Leto,” Musk said.
Investment Outlook and Market Potential
Elon Musk has made ambitious financial projections for Optimus. He predicted in September that the humanoid robot would represent 80% of Tesla’s value. Earlier statements suggested Optimus could generate more than $10 trillion in revenue.
“Optimus at scale is the infinite money glitch,” Musk said. “There is not really a limit to AI that is embodied.”
Wood’s ARK Artificial Intelligence & Robotics ETF reflects her conviction in robotics companies. Tesla comprises 9.16% of the fund’s holdings. Palantir and AMD follow at 7.02% and 6.14% respectively.
Wood emphasized the timeline for corporate AI adoption. She said large companies will require restructuring before achieving productivity gains from AI. “It is going to take a company like Palantir going into the largest enterprises and really restructuring them,” Wood explained.
Consumer Applications and Personal Productivity
Consumer-facing AI applications may develop faster than enterprise solutions. Wood expressed excitement about AI personal assistants handling everyday tasks like shopping. She noted AI has already improved her research productivity.
Wood acknowledged potential near-term challenges in AI investment. She warned about possible “reality check” moments as the technology matures. However, she maintained that current Big Tech valuations would prove justified over five years.
The Times Square demonstration included Tesla’s Cybercab alongside Optimus. The autonomous vehicle has no steering wheel or pedals and remains in development. Both products showcase Tesla’s autonomous technology roadmap.
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