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OpenAI Startup Fund quietly raises $15M | TechCrunch

Apr 26, 2024 - techcrunch.com
The OpenAI Startup Fund, a venture fund associated with OpenAI, has closed a $15 million funding round from two unnamed investors. The fund, which invests in early-stage AI-related companies across various sectors, transferred the capital to a special purpose vehicle (SPV) called OpenAI Startup Fund SPV II, L.P. This is the second time the fund has raised capital through an SPV, the first being a $10 million tranche in February.

The fund came under scrutiny last year when it was revealed that OpenAI CEO Sam Altman had legal control over it, leading to accusations of a conflict of interest. In April, Altman transferred formal control of the fund to Ian Hathaway, the fund's manager. The OpenAI Startup Fund has backed over a dozen startups and held $325 million in gross net asset value as of last year.

Key takeaways:

  • The OpenAI Startup Fund has closed a $15 million tranche, with two unnamed investors contributing the new cash. This is the second time the fund has raised capital through a special purpose vehicle (SPV).
  • The fund, which invests in early-stage AI-related companies across various sectors, is technically separate from OpenAI and is managed by Ian Hathaway.
  • OpenAI CEO Sam Altman had previously controlled the fund, leading to criticism of a potential conflict of interest. In April, Altman transferred formal control to Hathaway.
  • The OpenAI Startup Fund has backed over a dozen startups and had $175 million in commitments and $325 million in gross net asset value as of last year.
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