## [# Artificial Intelligence ETF Launches as Controversy Swirls ](/sections/daily-etf-watch/artificial-intelligence-etf-launches-controversy-swirls)
# Artificial Intelligence ETF Launches as Controversy Swirls
Roundhill’s new CHAT invests in potentially profitable technology.
[](/authors/gabe-alpert)
[By Gabe Alpert](/authors/gabe-alpert)
May 19, 2023
Edited by: Ron Day
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Roundhill Financial Inc., known for its metaverse, gaming and cannabis exchange-traded funds, has brought to market another fund that seeks to tap into a market with soaring demand, that of artificial intelligence.
[Roundhill](https://www.etf.com/topics/roundhill-investments), whose eight other ETFs have $612 million in assets, launched the [Generative AI ETF (CHAT)](https://www.roundhillinvestments.com/assets/pdfs/chat_prospectus.pdf) on May 18. Nvidia Corp., whose chips power AI products, is the top holding. Other top holdings include Microsoft Corp., which recently invested $10 billion into ChatGPT inventor OpenAI as well as Baidu Inc., the Chinese search engine that’s preparing to launch its so-called Ernie bot.
Generative AI, which mines online data to permit simple creation of text and images, and chatbot-related stocks, have soared this year after the release of ChatGPT, despite doomsday scenarios and calls for government oversight. Calls for an ETF dedicated to the technologies have been increasing, Roundhill executives told etf.com.
"We had been hearing from investors for months that they were interested in investing in generative AI but were frustrated by the lack of ETF options available to them,” Roundhill’s Chief Strategy Officer Dave Mazza said in a [statement](https://www.prnewswire.com/news-releases/roundhill-investments-launches-generative-ai--technology-etf-nyse-arca-chat-301828049.html). The technology may reach $120 billion in global enterprise sales in a decade, Director of Research Matthew Kanterman wrote in a [blog post.](https://blog.roundhillinvestments.com/sizing-up-the-generative-ai-opportunity-120-billion-in-enterprise-tam)
The fund, which also invests in C3.ai Inc. and China’s iFlyTek, slipped about 1% in afternoon trading to $25.70. C3.ai makes software that provides machine learning programs for enterprise customers, while iFlyTek makes voice recognition software. The fund also holds SenseTime Group Inc., a maker of machine learning tools based around facial and image recognition.
AI programs like ChatGPT and image generation program DALL-E 2 are courting controversy as they grow. Calls for regulation are rising as fears of criminal activity, fraud, misuse by groups seeking to radicalize followers and myriad other concerns stoke social anxieties.
The ongoing [strike](https://www.npr.org/2023/05/18/1176806824/striking-movie-and-tv-writers-worry-that-they-will-be-replaced-by-ai) by The Writers Guild of America is calling for regulation of AI by Hollywood firms, which the guild sees as being eager to replace writers with AI in a way to cut out writer’s credits and the accompanying royalties.
*Contact Gabe Alpert at *
[ Gabe Alpert ](/authors/gabe-alpert)
Gabe Alpert is a former data reporter at etf.com with over seven years’ experience in financial journalism. He also previously contributed reporting… [View Bio](/authors/gabe-alpert)
Related Topics [Artificial Intelligence](http://www.etf.com/topics/artificial-intelligence)
[Technology](http://www.etf.com/topics/technology)
[Innovation](http://www.etf.com/topics/innovation)