Ark Invest's Cathie Wood Says AI Not In A Bubble But Warns Of Market ‘Reality Check’

Benzinga

Cathie Wood said AI isn’t in a bubble but expects a valuation “reality check” as interest rates rise. Speaking in Riyadh, she said innovation can thrive even in high-rate environments despite short-term market volatility.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02ARK Invest CEO Kathy Wood told CNBC at the Future Invest Initiative in Riyadh that she does not

00:07believe artificial intelligence is in a bubble, but expects a reality check in valuations and

00:11interest rates rise, and according to CNBC. Speaking to CNBC and Saudi Arabia's Future

00:16Investment Initiative, Wood said that as interest rates begin to rise, markets will experience a

00:21temporary shutter. She shared the belief that innovation and interest rates move in opposite

00:25directions is historically incorrect. Wood added that while innovation can continue in higher

00:29rate environments, algorithmic trading may still trigger a short-term shutter in the markets.

00:34Comments follow warnings from the IMF, Bank of England, and other financial lenders

00:38about overheating AI-driven markets. For all things money, visit Benzinga.com.

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