AI-focused funds: Top trusts for tech investors over past 3 years

Three investment trusts, including ETFs, have emerged as the leading vehicles for tech investors focused on AI over the past three years. The trusts have been the place to be since OpenAI's ChatGPT first burst on the scene in November 2022, changing the tech landscape. These funds have taken big positions in AI-focused stocks, making them the top choice for tech investors.

Over the past three years, a trio of investment trusts have emerged as the leading vehicles for tech investors focusing on Artificial Intelligence (AI). These trusts have taken significant positions in AI-focused stocks, making them the top choice for tech investors since OpenAI's ChatGPT first burst onto the scene in November 2022 [1].

A Citywire survey of 16 funds, including Ucits funds and ETFs, explicitly targeting the fast-growing AI theme, highlights the prominence of these investment trusts. The survey found that these trusts, along with a handful of ETFs, have been the preferred options for investors over the past three years [1].

Reka AI, a startup founded in 2022 by former Google and Meta researchers, exemplifies the growing interest in independent AI players. Reka recently crossed the $1 billion valuation mark, closing a $110 million funding round led by Nvidia and Snowflake. This funding round more than tripled its last known valuation of $300 million from 2023. Reka builds large language models and offers tools beyond just models, such as application logic and custom interfaces, reflecting a strategy to build fast, stay independent, and fill gaps left by larger tech companies [2].

OpenAI's latest innovation, the ChatGPT Agent, further underscores the advancements in AI. This agentic tool combines web browsing capabilities with research functions to handle complex business workflows autonomously. The ChatGPT Agent can browse the web, filter search outputs, execute code, and generate editable documents like spreadsheets and presentations. This tool enhances the capabilities of ChatGPT, allowing users to streamline complex technological workflows [3].

The rise of these investment trusts and innovative startups signals a shift in the tech landscape. As capital floods into AI and companies seek flexible alternatives, the independence and efficiency of these players are likely to continue attracting investors.

References:

[1] https://citywire.com/funds-insider/news/investment-trusts-rule-the-roost-among-ai-focused-tech-funds/a2470290
[2] https://www.tradingview.com/news/gurufocus:7b1afcee3094b:0-this-tiny-ai-startup-just-hit-1-billion-and-it-s-not-backed-by-openai-or-google/
[3] https://technologymagazine.com/news/openai-launches-chatgpt-agent-for-enterprise-users