TL;DR:
- Roundhill Investments launches the Roundhill Generative AI & Technology ETF (CHAT) on NYSE Arca.
- CHAT offers exposure to companies leading the way in artificial intelligence technology, specifically generative AI.
- Generative AI has already demonstrated real-world impact and is rapidly growing.
- OpenAI’s ChatGPT has reached 100 million users and is being integrated into various applications.
- The enterprise generative AI software market is estimated to be worth ~$120 billion.
- Artificial intelligence has the potential to drive $7 trillion in global economic growth over the next seven years.
- Generative AI creates new data using neural networks, producing original and unique content.
- CHAT is an actively-managed ETF focusing on generative AI and related technologies.
- Top holdings at launch include Nvidia, Microsoft, Alphabet, Baidu, iFLYTEK, Adobe, AMD, SenseTime Group, C3.ai, and Salesforce.
- CHAT aims to meet the demand for investing in generative AI technology.
Main AI News:
Roundhill Investments, a prominent ETF sponsor renowned for its focus on groundbreaking financial products, is delighted to unveil the launch of the Roundhill Generative AI & Technology ETF (NYSE Arca: CHAT), commencing trading today on the esteemed NYSE Arca. This groundbreaking ETF, with the ticker symbol CHAT, offers investors an exceptional opportunity to tap into the potential of artificial intelligence technology, particularly in the realm of generative AI.
Dave Mazza, the esteemed Chief Strategy Officer at Roundhill Investments, elucidates, “Generative AI represents the next frontier of artificial intelligence technology, promising to revolutionize numerous industries including entertainment, healthcare, and beyond. With CHAT, investors can effortlessly access this rapidly-evolving domain, potentially reaping the rewards of what we believe will be the exponential growth of generative AI technology.“
In contrast to other technological megatrends, generative AI has already made significant inroads in the real world. OpenAI’s ChatGPT, for instance, has reached an astounding milestone, attracting a colossal user base of 100 million*, making it the fastest-growing application ever. Moreover, customers have already begun seamlessly integrating this cutting-edge technology into their daily lives, employing it for a diverse array of purposes spanning creative writing to software development.
Our proprietary research indicates a staggering total addressable market value of approximately $120 billion for enterprise generative AI software. Furthermore, Goldman Sachs research suggests that artificial intelligence could potentially fuel a staggering $7 trillion surge in global economic growth over the next seven years, largely driven by accelerated productivity growth.
Generative AI, a groundbreaking branch of artificial intelligence technology, harnesses the power of neural networks to generate novel data that exhibits a similar structure and format to existing data. Diverging from other AI methodologies that solely rely on existing data for predictions or classifications, generative AI possesses the remarkable capability to create entirely new and original data.
This extraordinary feat is made possible through the intricate utilization of complex algorithms that adeptly discern patterns and correlations within expansive datasets, enabling the AI system to seamlessly produce fresh content or ideas that mirror the style or format of its training data.
The Roundhill Generative AI ETF (CHAT), meticulously managed to ensure optimal performance, empowers investors with global exposure to pioneering companies deeply entrenched in generative AI and related technologies.
Upon its launch, CHAT’s premier holdings include esteemed entities such as Nvidia, commanding an impressive weight of 7.8%, followed closely by Microsoft at 7.6%, Alphabet at 7.2%, Baidu at 5.4%, iFLYTEK at 5.0%, Adobe at 4.9%, AMD at 4.9%, SenseTime Group at 4.7%, C3.ai at 4.5%, and Salesforce, listed as CRM on the NYSE, at 3.6% weightage.
Mazza adds, “For months, we had been inundated with expressions of interest from investors who were eager to invest in generative AI but were disheartened by the scarcity of available ETF options. Roundhill is thrilled to meet this market demand head-on with CHAT, an ETF that encompasses the frontrunners of what we believe to be one of the most rapidly expanding technologies in human history.”
Conlcusion:
The launch of the Roundhill Generative AI & Technology ETF (CHAT) on NYSE Arca signifies a significant development for the market. This ETF provides investors with a unique opportunity to capitalize on the advancements and potential of generative AI technology. With generative AI already making a real-world impact and projected to experience exponential growth, the market is poised for transformative changes across various industries.
The inclusion of prominent companies in the ETF’s holdings further solidifies the importance and potential of generative AI. This launch not only meets the demand for investment options in this rapidly expanding field but also underscores the market’s recognition of generative AI as a key driver of future economic growth and innovation.
