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Cathie Wood's $5.4B Gene Editing Gamble
6 Jan
Summary
- Wood invested $5.4 billion in gene editing firms.
- She foresees 2026 as a major breakthrough year.
- AI is seen as a key accelerator for genomics.
Cathie Wood has significantly reallocated capital, investing $5.4 billion into gene editing companies such as Beam Therapeutics. This strategic pivot sees ARK Invest divesting from established tech darlings like Tesla, Roku, and Shopify, focusing instead on the emerging genomics sector.
Wood believes that by 2026, artificial intelligence will catalyze a genomic revolution, transforming gene editing from a laboratory concept into a commercial success. This bold thesis positions her to capitalize on what she deems the most profound application of AI, potentially curing genetic diseases.
Despite the immense potential, this strategy involves substantial risk. The gene editing companies are largely pre-revenue and depend heavily on successful clinical trials and regulatory approvals, a process that could take years. Investors face the challenge of waiting for these developments, with past performance indicating both spectacular successes and notable misses in Wood's investment history.
