Robinhood Expands Retail Access to AI Startups Amid Post-Earnings Volatility

Robinhood Markets is making bold moves to democratize access to private AI investments through its new closed-end fund, Robinhood Ventures Fund I. The SEC-filed vehicle will allow retail investors to own stakes in at least five pre-IPO AI companies—a sector where CEO Vlad Tenev sees sustained demand despite bubble whispers.

The launch comes as HOOD shares show unusual divergence: an 11% post-earnings drop despite reporting 100% revenue growth to $1.27 billion. Analysts are responding with upgraded targets, forecasting 24% upside potential as the platform capitalizes on retail's AI enthusiasm.

Tenev's confidence appears grounded in user behavior. Robinhood customers are actively accumulating AI-related assets, fully aware of the high-risk, high-reward nature of such bets. The fund's illiquid structure—with limited redemption options—serves as both a safeguard and a test of retail investors' commitment to long-term tech plays.