Sam Altman cedes control of OpenAI's start-up fund
What's the story
Sam Altman, the CEO of OpenAI, has officially transferred control of the 'OpenAI Startup Fund' to Ian Hathaway. OpenAI has made changes to the governance structure of its venture capital fund to create greater transparency and address potential conflicts of interest. Altman raised money from external investors for the fund, similar to a traditional VC firm. However, he also made investment decisions for the fund while heading OpenAI as its CEO.
New leadership
Hathaway has been a partner in the fund since 2021
Hathaway, who joined OpenAI in 2021, is now at the helm of the Startup Fund. So far, he has been a partner in the fund. During his tenure at OpenAI, he has been instrumental in directing the fund and leading investments in companies such as Ambience Healthcare, Cursor, Harvey and Speak. "The fund's initial General Partner structure was a temporary arrangement, and involved no personal investment or financial interest from Sam. This change provides further clarity," OpenAI told Axios.
Fund performance
OpenAI Startup Fund's impressive financial growth
By 2023, the OpenAI Startup Fund had secured $175 million in commitments and currently holds a gross net asset value of $325 million, according to an SEC filing. The fund's investor pool includes tech giant Microsoft among other external supporters. Its investment strategy is primarily focused on early-stage AI-centric companies across various sectors such as healthcare, law, and education.
Key investments
OpenAI Startup Fund's notable investments
Data from PitchBook reveals that the Startup Fund has supported at least 16 start-ups. Among these are Descript, a collaborative editing platform valued at $553 million last year, and Ghost Autonomy, which develops software for autonomous driving. These investments underscore the fund's commitment to backing innovative AI-centric companies across diverse sectors.