Cathie Wood on How AI Can Double GDP, Bull Case for Bitcoin $1M, Elon's Trillion-Dollar Pay Package

**Chamath** (0:02)
One of the most disruptive and innovative forces in the ETF world today, the investor queen, Cathie Wood. The ARK Innovation ETF trading now near a 52-week high, returned an astounding 148 percent.

**Jason** (0:14)
Returning more than 170 percent last year, now has $17 billion under management.

**Cathie Wood** (0:20)
My conviction is so high because of what I do on a day-to-day basis. We are doing original research, trying to figure out these companies that are going to transform the world.

**Sacks** (0:31)
Ladies and gentlemen, please welcome ARK Invest's Cathie Wood.

**Cathie Wood** (0:47)
Well, greetings. I'm so delighted to be here, my maiden voyage. And I am here to talk about how the world's going to transform during the next five to ten years, and how much more rapidly we will see real GDP grow and how low inflation is going to be and why. So here we go. Here is a timeline of innovation, and you can see it goes into the 1700s, and our chief futurist, Brett Winton, in conjunction with academics, pulled this together. And what you're seeing here is the impact of innovation on productivity. And you can see in this time we've had two great eras. The first one was in the late 1800s, early 1900s. Telephone, electricity, internal combustion engine. Huge boost in GDP growth. And in fact, prior to that, for the 400 years prior to that, real GDP growth had been averaging about 0.6% per year. Very slow.
After that, we went into a 125-year period of 3% real GDP growth. So a five-fold increase from 0.6% to 3%.
You have to move forward to today to see multiple innovation platforms evolving at the same time. So for the first time in 125 years. This time, there are five platforms, not three major platforms. And they involve 15 different technologies. This is very important in terms of how to research and analyze the world. It's not going to be by sector or industry anymore. It is going to be by technology, because technology is permeating every sector, every industry, and blurring the lines between them. So, you can see five here. We believe that the productivity uplift here is going to be so strong during the next five to ten years. And I think President Trump's tax package is going to turbocharge this, that real GDP growth will accelerate from that 3% where it has been for the last 125 years, towards 7% plus. And we think that could be conservative. That's a little more than two times as opposed to the five-fold uplift before. So get ready. But the other thing that we think is going to happen is that inflation is going to surprise significantly on the low side of expectations. We would not be surprised to see 0% inflation or less as we exit the tariffs here. And the way they're getting through the indexes and move forward into this new age of technological explosion. One of the reasons for this explosion is not just the five platforms. So I should have named them Robotics, Energy Storage, Artificial Intelligence, Blockchain Technology and Multiomic Sequencing. Five major platforms involving 15 different technologies. And here you can see why we think we're going to see explosive growth. It is the convergence between and among these technologies. So just to give you two examples of convergence. In the autonomous mobility space, that is the convergence of robotics, energy storage and artificial intelligence. Now each one of those technologies or platforms is following its own S-curve. And we are moving into the sweet spot of the S-curve now that autonomous taxis are debuting in the case of Tesla in Austin and San Francisco. Waymo's been there for a while. Just think about that. One S-curve feeding another S-curve feeding another S-curve. That's why we're going to see explosive growth. Another example is in the health care space. While the autonomous mobility space might be the biggest revenue generator in the short term, we believe that the most profound application of AI is in health care. And that's the convergence of sequencing technologies and artificial intelligence and technologies like CRISPR gene editing. And I think this is the sleeper. It's the most inefficiently priced part of the market. So you can see why it's going to be so important to set up research departments by technology, not by sector or industry. And on this last page here, here is what we think is going to happen to the equity market in terms of valuations. So you can see in the turquoise there, that's the MAG-6. The MAG-6, it used to be called the MAG-7, but they threw Tesla out when it wasn't behaving like the rest of the MAG-6. So you can see from 2019 to 2024, the MAG-6 tripled. They tripled in valuation in the market cap. Whereas truly disruptive innovation in the purple at the bottom there went up only 30%. And that's because investors were playing it safe. And they were investing only in the largest, most cash rich stocks in the market. That was a very difficult time for innovation, for venture capital generally.