Cathie Wood's ARK Invest stepped in to buy CoreWeave shares during Wednesday's AI stock sell-off while trimming its stake in Palantir, according to the firm's daily disclosures. The moves, disclosed in the end-of-day trading update, came as AI-linked equities sold off broadly. Because ARK publishes its fund trades each session, the filings give outside observers a same-day window into how the firm repositions during volatility.

ARK Invest, which publishes daily trade notifications for its exchange-traded funds, purchased 188,665 CoreWeave shares, a position worth approximately $12.4 million at Wednesday's closing price. In the same session, the firm sold 31,432 Palantir shares valued at roughly $6.3 million. The disclosures also listed additional purchases of Meta and Cerebras shares across several of its funds that day. Cerebras, an AI chipmaker, gives the day's buys exposure spanning AI infrastructure, chips, and AI software.

The transactions involved listed technology shares rather than the event contracts traded through U.S. prediction markets, a sector confronting a separate regulatory dispute over government oversight.

CoreWeave Slumps as Borrowing Costs Rise

CoreWeave shares dropped 15.46% to $65.78 on October 14. The decline followed mounting concern over the AI infrastructure provider's borrowing costs and the scale of its spending on AI data centers.

CoreWeave, a cloud provider purpose-built for artificial intelligence workloads that went public on the Nasdaq in March, carried about $52 billion in debt and lease obligations at the end of June, and its net interest expense reached $640 million in the second quarter. The company's expansion requires funding for new facilities, specialized chips, and long-term leases, even as customers reserve future computing capacity.

Its unsecured bond yields recently approached 15%, a move that reflects falling bond prices. For a debt-funded build-out, higher yields make each new round of financing more expensive. At the same time, CoreWeave has reported a revenue backlog near $104 billion and said nearly all of its 2027 capacity has customers. Analysts, however, continue to question its funding needs as bond yields rise, and the company's next earnings report is the next scheduled venue for updated financing and backlog figures.

ARK Reduces Palantir Exposure After Share Rally

ARK's Palantir sale reduced its position rather than closing it. Palantir shares ended Wednesday at $200.97 after gaining more than 60% since August.

Goldman Sachs recently upgraded Palantir to Buy and set a $230 price target, citing demand for AI software among companies and government agencies. Palantir, whose platforms serve corporate and government clients, has reported strong revenue growth, and its elevated market valuation remains a focus for investors, with commentary around the Goldman Sachs upgrade highlighting the premium investors are paying for its shares. Any further change to ARK's stake would surface in the firm's daily trade notifications.

U.S. Prediction Markets Face Separate Regulatory Dispute

The stock transactions came during a week of wider market uncertainty. U.S. prediction markets, which offer contracts tied to future events, faced a separate debate over government oversight.

CFTC-regulated exchange Kalshi has sat at the center of that debate. Kalshi Chief Executive Tarek Mansour warned that legal disputes could push trading in event contracts overseas. His comments followed state-level to sports-related contracts, which turn on whether state gambling rules can reach contracts traded on federally regulated venues.

ARK's transactions concerned AI companies rather than those event contracts. The firm's latest filings show purchases in CoreWeave alongside a smaller Palantir position, as investors weigh borrowing costs across AI infrastructure and valuations across AI software.