Ark Invest founder and Chief Executive Cathie Wood has identified humanoid robots as one of the next major frontiers in artificial intelligence, predicting that machines modeled after humans in form and function could become the most valuable “embodied AI” opportunity.
Speaking to CNBC on the sidelines of the Future Investment Initiative (FII) conference in Riyadh, Saudi Arabia, on Tuesday, Wood said artificial intelligence will not only accelerate the development of humanoid robots but also transform industries such as transportation and healthcare.
“I know a lot of people are worried about all the ‘AI hype,’” Wood said. “But as we’re looking to the future, especially with embodied AI, which is all about robotaxis and transforming the world of transportation completely — and then healthcare, which is probably one of the most profound applications of AI — we think that this investment will pay off.”
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She continued: “I think the chaser is going to be humanoid robots. And I think that is going to be the biggest of all the embodied AI opportunities.”
Humanoid robots, powered by advanced artificial intelligence, have long fascinated technologists and the public alike. Companies worldwide are racing to develop machines capable of replicating human movement, communication, and problem-solving skills — innovations expected to reshape sectors from healthcare and logistics to personal assistance and retail.
Despite its promise, investors have historically remained cautious about humanoid robotics, citing high costs and limited real-world performance. However, growing breakthroughs in generative AI, computer vision, and mobility systems have renewed optimism about their commercial potential.
Tesla CEO Elon Musk is among the leading voices backing the technology. The billionaire has repeatedly stated that Tesla’s humanoid robot, Optimus, will eventually account for the majority of the automaker’s valuation.
“I think Optimus will ultimately be more valuable than the car business, and more valuable than FSD [Full Self-Driving],” Musk said earlier this year.
Last month, he suggested the robots could one day represent about 80 percent of Tesla’s market value.
Wood’s confidence in the sector reflects her firm’s broader investment strategy, which targets disruptive technologies in AI, robotics, and automation. According to data from ARK Invest, the top holdings of its Artificial Intelligence & Robotics UCITS ETF include Tesla (9.16%), Palantir (7.02%), and AMD (6.14%) — all companies deeply involved in AI innovation.
On the enterprise side, Wood said AI’s impact will take time to fully materialize, as large corporations will need to reconfigure their operations to unlock its productivity potential.
“It is going to take a company like Palantir going into the largest enterprises and really restructuring them in order to capitalize on the productivity gains that we think are going to be unleashed by AI,” she explained.
She also noted that while businesses may take time to adapt, consumers are embracing AI more rapidly.
“The consumer loves all of this,” Wood said. “We’re all looking forward to our personal assistants doing our shopping for us. I am really excited about not just shopping, but how much my productivity as an individual is going to increase with AI. It already has in terms of research.”
However, Wood tempered her optimism with a warning that the AI market could experience a short-term “reality check,” as investor enthusiasm and valuations reach unprecedented highs. She argued, nonetheless, that current valuations for major technology firms would ultimately prove justified over a longer, five-year horizon.
Wood indicated that the world of tech is in the early stages of something massive, emphasizing that embodied AI, from robotaxis to humanoid machines, could represent the next transformative wave in global technology.
Her remarks are expected to boost the belief that the future of artificial intelligence may not only be virtual, but physical, embodied, and human-shaped — especially as major players like Tesla, Nvidia, and Figure AI ramp up their humanoid robot programs.