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Sam Altman No Longer Owns OpenAI's Startup Fund

Apr 02, 2024 - techtimes.com
OpenAI's governance structure has been altered, removing CEO Sam Altman from owning the company's venture capital fund, OpenAI Startup Fund, that invests in AI startups. The change, documented in an SEC filing on March 29, was in response to criticism over Altman's ownership of the fund due to its unique structure. Despite being the owner, Altman did not have a financial stake in the fund. The fund is now managed by Ian Hathaway, who has been involved with the fund since its inception in 2021.

In other news, OpenAI continues to face legal challenges as co-founder Elon Musk has sued the company and CEO Sam Altman, alleging they have deviated from their initial charitable objectives. Musk's lawsuit claims that OpenAI's $13 billion partnership with Microsoft and the confidentiality of the company's current generative AI products contradict the company's core values. The lawsuit demands a jury trial and payment of earnings.

Key takeaways:

  • OpenAI's governance structure change has removed Sam Altman from owning the OpenAI Startup Fund, with Ian Hathaway now in charge.
  • The fund, which invests in early-stage AI-driven businesses, reportedly has $325 million in gross net asset value, including $175 million in commitments last year.
  • OpenAI is not an investor in the $175 million that the OpenAI Startup Fund has raised from partners like Microsoft.
  • OpenAI and its CEO Sam Altman are currently involved in a legal battle with co-founder Elon Musk, who claims they have strayed from their initial charitable goals.
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