As OpenAI and Anthropic prepare to transition from the two most valuable private companies in the world to publicly traded stocks, excitement is building among growth investors. Both artificial intelligence (AI) companies have filed confidential S-1 registration statements with the Securities and Exchange Commission (SEC), paving the way for potential initial public offerings (IPOs) by the end of the year.
Unfortunately, the IPO process often excludes everyday investors. Instead, companies work with investment banks to prepare the S-1, which details the business model, historical financials, operational risks, and governance structure. A roadshow then follows, during which executives pitch the investment thesis to large institutional buyers.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Book building is the phase during which underwriters collect indications of demand from hedge funds, mutual funds, endowments, and other accredited investors to set the final offering price. For this reason, retail investors rarely receive allocations at the IPO price, because they lack the relationships or financial scale that banks prioritize.
As a result, most individuals have to wait until IPO stocks list on public exchanges, where initial trading frequently occurs at a premium driven by enthusiasm and limited supply. Fortunately, there are several accessible investment products that provide retail investors with exposure to both OpenAI and Anthropic without needing to wait for the IPO bell.
Image source: Getty Images.
KraneShares Public-Private AI & Technology ETF (AGIX)
The KraneShares Artificial Intelligence and Technology Public and Private ETF (NASDAQ: AGIX) is interesting because it holds a basket of public stocks that are complemented by select positions in private AI companies. The exchange-traded fund (ETF) has a direct position in Anthropic, giving shareholders exposure to one of the most prominent frontier AI labs.
Beyond this private stake, however, the fund also owns stock in companies that have made strategic investments in Anthropic — namely, Alphabet and Amazon. This structure creates layered exposure to Anthropic’s long-term success. With shares trading right on the Nasdaq, the ETF offers daily liquidity and ease of purchase through standard brokerage accounts.
Overall, the KraneShares AI and Technology Public-Private ETF lets investors capture growth across the full AI value chain — from generative model developers to the infrastructure and application builders. While its expense ratio of 0.99% is a premium compared to most ETFs, investors should keep in mind that they are paying up for direct exposure to private businesses that are usually off limits.
For investors seeking a targeted AI portfolio that includes a private-market kicker without the accredited investor requirement, this fund provides a straightforward solution.
Cathie Wood’s Ark Venture Fund
The Ark Venture Fund(NASDAQMUTFUND: ARKVX) is managed by technology investor Cathie Wood. The fund maintains an 8.5% weighting in OpenAI and 6.4% weighting in Anthropic. Moreover, the Ark Venture Fund holds other high-conviction private names in disruptive innovation, such as Kalshi and Figure AI.
What distinguishes the Ark Venture fund from most ETFs is its structure as an interval fund. An interval fund is a closed-end vehicle that periodically offers to repurchase a portion of shares outstanding from investors. The idea here is to offer more liquidity than a traditional closed-end fund or direct private equity investment.
Investors need to remember that redemptions are limited to the fund’s scheduled intervals and may be subject to prorating if sale requests exceed available liquidity. In addition, the Ark Venture Fund requires a $500 minimum investment to buy shares.
With meaningful holdings in both OpenAI and Anthropic, this fund is designed to democratize access to venture capital opportunities while balancing the need for capital flexibility.
What is in the Ark Innovation ETF?
Another one of Wood’s funds is the Ark Innovation ETF(NYSEMKT: ARKK). As Wood’s flagship ETF focused on disruptive innovation, the Ark Innovation fund incorporates a direct private holding in OpenAI alongside a core portfolio of publicly traded growth stocks in AI, genomics, fintech, and autonomous technology.
The position in OpenAI enhances the fund’s thematic alignment with frontier AI development. The Ark Innovation ETF trades on exchanges with full daily liquidity, making it simple for everyday investors to buy or sell shares without restrictions. Although its holdings are far more diversified than a pure private fund, the OpenAI stake provides targeted pre-IPO exposure wrapped inside a familiar ETF.
Like the KraneShares ETF, the Ark Innovation fund boasts a rich expense ratio of 0.75%. For those who already follow Wood’s innovation-focused strategy, the fund still represents a convenient way to add OpenAI to your portfolio while also riding the tailwinds of several next-generation technologies.
Should you buy stock in ARK Venture Fund right now?
Before you buy stock inARK Venture Fund, consider this:
The Motley FoolStock Advisoranalyst team just identified what they believe are the10 best stocksfor investors to buy now… andARK Venture Fundwasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider whenNetflixmade this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,you’d have $417,305!* Or when Nvidiamade this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,you’d have $1,293,148!*
That performance is why people listen. With a track record ofbeating the S&P 500 by 4x,Stock Advisoroffers a distinct advantage. Don’t miss the latest top 10 list, available withStock Advisor, and join an investing community built for the long haul.
Adam Spatacco has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy.
