Ark Investment CEO Cathie Wood Talks H-1B Visa Program

Summary

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Bloomberg Talks: Ark Investment CEO Cathie Wood Talks H-1B Visa Program

Date: September 22, 2025
Host: Bloomberg
Guest: Cathie Wood, CEO and Founder of ARK Invest

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Episode Overview

In this episode, Bloomberg sits down with Cathie Wood, CEO of ARK Invest, to discuss the recent changes to the H-1B visa program under President Donald Trump, broader implications for the U.S. technology sector and global talent flows, as well as her perspectives on U.S. economic policy, productivity trends, and the ongoing AI race. The conversation also covers China's technological ambitions and corporate strategies.

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Key Discussion Points & Insights

1. H-1B Visa Changes and US-India Relations

• Trump’s H-1B Policy Shift:
  The Trump administration has sided with its anti-immigration wing, specifically targeting new H-1B visas. Cathie Wood frames these moves as part of ongoing negotiations with India, rather than a long-term U.S. policy stance.

• Long-term Perspective:
  Wood reassures that U.S. tech leaders believe the restriction is a temporary negotiation tactic, with the broader goal still being to attract international tech talent educated in the U.S.

  "This is part of a much broader negotiation, particularly with India in mind. Those negotiations have not finished and of course this is very important to India."
  —Cathie Wood [01:13]

• Regulatory Arbitrage and Global Talent:
  Other countries are viewing U.S. visa restrictions as an opportunity to introduce their own versions of "golden visas" to attract top talent.

  "I call this regulatory arbitrage. Other countries should be looking at this as an opportunity to attract the best and the brightest."
  —Cathie Wood [02:56]

2. Economic Policy, Productivity, and the Fed

• Rolling Recession and Recovery:
  Cathie Wood notes that the U.S. is transitioning from a rolling recession (2022–2024) to a rolling recovery. She attributes economic shifts in employment to soaring productivity and capital investment rather than signals of deeper recession.

• Corporate Tax Environment:
  She highlights the effective U.S. corporate tax rate potentially dropping as low as 10% after accounting for accelerated depreciation and tax code changes, despite the nominal rate staying at 21%.

  "When we incorporate accelerated depreciation...the effective corporate tax rate in the US could be now as low as 10%."
  —Cathie Wood [04:23]

• Contrarian View on the Dollar:
  Contrary to concerns about the dollar's future, Wood foresees a rebound due to higher returns on invested capital in the U.S. stemming from deregulation and pro-business policies.

  "We actually think that the dollar will turn around because the return on invested capital in the US thanks to deregulation and tax policies is going to increase relative to the return on invested capital elsewhere."
  —Cathie Wood [04:54]

3. Productivity, Inflation, and Economic Boom

• Productivity as an Anti-Inflationary Force:
  Wood expresses confidence that growth driven by higher productivity will not be inflationary. Instead, she expects inflation could fall below 2% in the next year, potentially even reaching zero.

  "Productivity is one of the most potent anti-inflationary forces. We would not be surprised to see inflation drop below 2% next year and head for zero because we think the productivity gains are that profound."
  —Cathie Wood [05:54]

• Outlook for 2026:
  She predicts the rolling recovery will evolve into a productivity-driven economic boom as the U.S. heads into midterm elections, crediting Biden-era policy for “engineering” this setup.

4. AI Investment Race and U.S. Tech Giants

• CapEx in Hyperscalers and AI:
  The massive capital expenditure by major U.S. hyperscalers (OpenAI, Anthropic, XAI, Gemini/Google) indicates heated competition. Most other AI startups have dropped out, leaving only the largest players.

  "They're really talking to one another, you know, and willing to throw as much capital as possible to leapfrog one another."
  —Cathie Wood [07:58]

• Meta’s Comeback Play:
  Meta (Facebook) is “acqui-hiring” talent from failed AI startups to get back in the game, leveraging an open-source strategy.

5. China’s Tech Strategy and Deep Seek

• Shift to Profitability:
  President Xi Jinping is redirecting China's economic focus toward “new productive forces”—i.e., technology. The government’s recent discouragement of “involution” or market saturation, particularly in electric vehicles, is seen as a positive move toward profitability.

  "We think competition is a great thing as long as it's rational. … President Xi Jinping's discussion about…moving away from involution…is very positive."
  —Cathie Wood [08:49]

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Notable Quotes & Memorable Moments

• On H-1B Visa Negotiations:

  "I think the suddenness, the Friday announcement and the lack of clarity threw a lot of people, including us. The clarity now is this applies only to new H1B visas."
  —Cathie Wood [01:38]

• On Regulatory Arbitrage:

  "Seize the moment." —Cathie Wood [02:56]

• On U.S. Productivity:

  "Companies are harnessing AI tools and substituting capital for labor…This rolling recovery will lead next year into an economic boom, a productivity-driven economic boom."
  —Cathie Wood [03:42, 05:10]

• On Tech Giants’ AI Race:

  "OpenAI is still ahead on at the margin, the others are getting closer…. Meta Platforms—they are…acqui-hiring out of these companies that are not going to make it right."
  —Cathie Wood [07:23]

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Key Timestamps

• 01:13 – Wood on H-1B as part of U.S.–India negotiations
• 02:56 – Regulatory arbitrage and global talent flows
• 03:42 – Shift from recession to recovery and productivity as driver
• 04:23 – U.S. effective corporate tax rate insight
• 05:54 – Productivity’s deflationary impact
• 06:46 – Capital spending and the AI hyperscaler race
• 08:49 – China’s shift toward technology profitability

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Summary Prepared for: Listeners seeking a thorough and insightful breakdown of Cathie Wood’s perspectives on U.S. economic policy, immigration, global talent, and the future of technology competition.

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Transcript

[Indiana University Narrator]

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[Cathie Wood]

Bloomberg Audio Studios Podcasts, Radio.

[Bloomberg Host]

News, the tech run up that we've seen in terms of stocks. This of course, after the Fed and its first rate cut of the year last week and the inflation data that we get out on Friday. Joining us now is CEO and founder of ARK Invest, Cathie Wood. Good morning, Cathy. So you've hot footed it from our TV studio into the radio studio. We really appreciate your time. We want to start on the H1B visa change with President Donald Trump. It seems that he has sided with maga's anti immigration wing rather than the tech executives that we saw him dining with only a few weeks ago. How much of a concern is it to you in terms of limiting those high skill tech employees, tech workers for some of the big names that you invested in?

[Cathie Wood]

Yes, well, I think this is part of a much broader negotiation, particularly with India in mind. Those negotiations have not finished and of course this is very important to India. I think that our tech executives understand, understand that, that this is a part of a broader negotiation. I think the suddenness, the Friday announcement and the lack of clarity through a lot of people, including us, the clarity now is this applies only to new H1B visas. So I think longer term this administration has said that it is very interested in bringing foreigners who have been educated in, into the US Workforce. And I think longer term that's, that's the way we should think about that.

[Bloomberg Host]

So you see a change coming. This is punishment for India and the impact on the US Is a side effect that will change.

[Cathie Wood]

It's a negotiation, negotiation with India. Longer term, I think President Trump and his team want to keep as much innovation, talent, technology talent as possible in the US.

[Bloomberg Co-Host]

Can I just ask you long term though, given the Trump administration wants to keep as much talent, you also have other countries raising the possibility of their own form of golden visas, perhaps seeing this as an opportunity to attract the same high skilled talent to their own countries. Could there be longer term ramifications if this H1B visa application fee does actually stay the higher fee?

[Cathie Wood]

Sure. I think this is, I call this regulatory arbitrage. Other companies, countries should be looking at this as an opportunity to attract the best and the brightest. As I said, I don't Think this is long term for the United States, but seize the moment.

[Bloomberg Host]

Hmm. Okay. That's interesting that this is. Jimmy, go ahead. Sorry.

[Bloomberg Co-Host]

No, no, I just wanted to pivot back to macro. You know, earlier this year you mentioned in one of an interviews that you conducted that the US had just started to exit a rolling recession that started back in 2022 and was on the path to recovery. And of course the went on to cut interest rates. Only last week, in your opinion, were the Fed too late to cut interest rates.

[Cathie Wood]

I think there have been signals that the Fed should cut interest rates for some time, but there's something else brewing. So this rolling recession we think is evolving into a rolling recovery. And you'll see weakness in employment. A lot of that is about productivity. Companies are harnessing a tools and substituting capital for labor. And I think a lot of people are going to think that, that, that this is another sign that we're heading into a deep recession. We do not think that's the case. We think that deregulation, lower taxes, I don't think people understand in the United States what has just happened to corporate tax rates. The rate itself has stayed at 21%. But when we incorporate accelerated depreciation on structures, equipment, DOM diagnostic R& D software, the effective corporate tax rate in the US could be now as low as 10%. So I hear a lot of talk about, you know, the dollar's demise and so forth. We actually think that the dollar will turn around because the return on invested capital in the US thanks to deregulation and tax policies is going to increase relative to the return on invested capital. Else. So a little contrarian point of view, but that's what we think. And we also think this rolling recovery will lead next year into an economic boom, a productivity driven economic boom. And I think this has been engineered by this administration. Get the bad news out of the way as quickly as possible because next year is the midterm elections.

[Bloomberg Host]

So it's a tax cutting environment, deregulated environment, air environment that boosts productivity. And so I mean this, this is very much what, what President Trump and the Republican administration believes. Others are concerned about it triggering inflation. Are you not concerned about that issue.

[Cathie Wood]

If productivity is the reason we're going to see accelerated growth? Not at all. In fact, productivity is one of the most potent anti inflationary forces. We would not be surprised to see inflation drop below 2% next year and head for zero because we think the productivity gains are that profound.

[Bloomberg Host]

Hmm.

[Bloomberg Co-Host]

Let me ask you about the huge capac spending plans that Many of the US hyperscalers have, you know, we're talking about the hundreds of billions of dollars a year and one company's investment is another company's revenue. As in the case of Nvidia. If there starts to be a marginal slowdown in just the scale of capex investment, would that not mark a turnaround in terms of just how much bullishness there is about the promises of artificial intelligence right now?

[Cathie Wood]

Well, I'm, I like everyone else are very, I'm very surprised at how willing these companies are to spend massive amounts on in this space. But what, what, what, what we're not seeing is all the companies who were starting to move into this space and have capitulated and we're down to the big four. So OpenAI, Anthropic XAI and Gemini, which is Google and I think they are moving further ahead and those are the companies who are really spending the markets are, are not funding as freely the, the other competitors. I know here in, in Europe that there are a few, so there will be regional specific large language models as well. But in terms of the global large language models, I think we're down to and they are duking it out. That's why we're hearing so much about these capital spending plans. They're really talking to one another, you know, and willing to throw as much capital as possible to leapfrog one another. But if you'll notice the performance characteristics of these LMS, while OpenAI is still ahead on at the margin, the others are getting closer. And one we haven't talked about is Metta Platform. They are as you know, Mark Zuckerberg Berg is acqui hiring out of these companies that are not going to make it right. So he's attracting a lot of capital and is probably going to try and get back in the game with his open source strategy.

[Bloomberg Host]

Hmm. What are the opportunities in China then? That's the other big story is around Deep Sea and the huge focus that China has on so much of the new technological world. But AI in particular, Deep Seek and others.

[Cathie Wood]

Yes, I think President Xi Jinping directed the economy a couple of years ago to new productive forces. And that's all about technology and competing aggressively in the technology arena. And we think competition is a great thing as long as it's rational. And on that score, President Xi Jinping's discussion about or recent pronouncement and his team's pronouncement that they want to move away from involution, which means massive commoditization in, in areas like electric vehicles. That is very positive. So is he starting to focus on profitability because these companies have to spend so much? I think so, and that's a good thing.

[Bloomberg Host]

Kathy, thank you so much for being with us. Really great to speak to you and hear your views on the H1B visa story as well as technological advances in China. Cathie W. Is CEO and founder of Ark Invest. This is Bloomberg.

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Indiana University is shaping the future of health care, advancing discoveries that become treatments for Alzheimer's, obesity, cancer and other rare and complex diseases and training the next generation of providers, doctors and nurses trusted to address health challenges with skill, compassion and purpose. From the lab to the clinic, from research teams to patient care, IU talent is driving medical innovation, improving health outcomes and strengthening communities. See how IU solves what's next iu.

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