Story perspectives

Rising Interest Rates May Shake AI Boom, Warns Wood

10/28/2025

Summary

Story summary

Cathie Wood, CEO of Ark Investment Management, warned at the Future Investment Initiative in Riyadh that rising interest rates could trigger volatility in the artificial intelligence (AI) boom and prompt a reality check on tech valuations.
She remains optimistic about long-term growth from innovation in AI and other technologies.
She noted that some companies cut jobs to enhance efficiency through AI.
The U.S. economy is poised for a productivity boom.

History

Historical Context

The Future Investment Initiative (FII) launched in October 2017 in Riyadh, Saudi Arabia, aimed to reshape global investment by focusing on technology and innovation. The Saudi Public Investment Fund committed $45 billion to tech ventures, reflecting a shift towards artificial intelligence. This initiative aligns with Saudi Vision 2030, emphasizing economic diversification and modernization amid concerns reminiscent of the 2000 dot-com bubble.

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Story summary

Cathie Wood, CEO of Ark Investment Management, warned at the Future Investment Initiative in Riyadh that rising interest rates could trigger volatility in the artificial intelligence (AI) boom and prompt a reality check on tech valuations.
She remains optimistic about long-term growth from innovation in AI and other technologies.
She noted that some companies cut jobs to enhance efficiency through AI.
The U.S. economy is poised for a productivity boom.

1 / 2