Sound Ventures is More Evidence of How Much Capital AI is Attracting
Around investment circles, it is not unusual to debate what Cathie Wood is touting as disruptive and “the next big thing.” Another hedge fund manager that gets that kind of attention is Michael Burry, whose Tweets are followed by an army of “Burryologists” working to decode his words or advice. But the watercooler talk never before included Ashton Kutcher – at least not until now. The actor, originally made famous by his portrayal of a less-than-intelligent character on the TV sitcom, That 70’s Show, is a partner in a successful hedge fund he co-founded.
The firm, Sound Ventures, made news this month with an announcement that it had closed a $240 million artificial intelligence (AI) fund. The stated purpose of the fund is to invest in early-stage AI companies that have the potential to make a significant impact on life. Part of Kutcher’s interest in AI is what he believes the technology’s has potential to solve some of the world’s biggest problems. His list includes poverty, disease, and climate change. Kutcher and his business partner, Guy Oseary, say they are committed to investing in AI companies that are working to make a positive impact on the world.
Since 2015, Sound Ventures has invested in a number of successful companies that, include tech disruptors Airbnb, Spotify, and Uber. As far as AI, Kutcher says he is most interested in AI companies that have the potential to revolutionize various industries, the focus being companies that are at the forefront of this technology.
The venture Capital (VC) firm announced in early May that it closed the Sound Ventures AI Fund. The fund was oversubscribed by nearly $240 million. It is noteworthy that C3.AI, the heart of ChatGPT, has a market cap of just 10 to 12 times this amount. So while this may not sound like a huge sum, it is significant relative to the size of the companys the fund may invest in.
The fund seeks to invest in AI businesses at the foundation model layer. Currently, the fund’s portfolio of companies includes OpenAI, Anthropic and StabilityAI. Kutcher, Oseary and Effie Epstein lead Sound Ventures as general partners.
Sound Ventures has already been investing in AI for the past decade, “and we believe that this moment in history will dictate the trajectory of this technology,” Epstein said. “Our team is well positioned to continue investing in and supporting exceptional founders that are thoughtfully shaping the future through artificial intelligence.”
Take Away
Famous investors and famous people have the ability to draw attention to their investment activities. Actor Ashton Kutcher, his neighbor Guy Oseary, who is a talent manager, and Effie Epstein, who was formerly head of investor relations at iHeartMedia, are able to draw a good deal of attention to their investment work.
The activity of Sound Ventures also demonstrates the ability to raise capital for anything that is tied to artificial intelligence.
Managing Editor, Channechek
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