OpenAI Won't Save ARKK

ARK Innovation ETF has added a ~3% allocation to OpenAI via its Series C private placement, seeking exposure to frontier AI labs. I view OpenAI as overvalued at an $852B post-money valuation, as it is highly unprofitable and facing intensifying competition and shrinking market share. ARKK's inclusion of OpenAI increases portfolio risk, as the company's massive cash burn and product cancellations signal deteriorating fundamentals.