OpenAI has restructured its management of the startup fund that supports AI companies, with its former CEO Sam Alteman no longer owning or managing the fund. Deposit owned by the US Securities and Exchange Commission.
The change came after Alteman’s ownership of the fund raised eyebrows due to its unconventional structure.
The company marketed the fund as an investment vehicle for startups, even though Alteman raised money from external limited partners and made investment decisions himself.
These types of funds typically invest company funds in startups and are managed by an external individual.
OpenAI stated that Alteman was not interested in the money in the fund regardless of ownership, and that the initial fund structure was temporary, and this change enhances transparency.
The OpenAI fund invests $175 million in early-stage startups in various fields such as healthcare, law, education, energy, infrastructure, sciences, and more.
The fund raised capital from OpenAI partners, such as Microsoft, even though the company itself is not an investor.
Now the fund controls total assets worth $325 million. Ian Hathaway, a partner in the fund since 2021, has been appointed to manage the fund, after Alteman ceased to be a partner.
OpenAI mentioned that Hathaway was responsible for accelerating the company’s fund and led investments in companies like Harvey, which provides AI tools for lawyers, and language learning apps like Speak, Cursor, and Ambience Healthcare.
Alteman, who previously served as the head of Y Combinator, which accelerates startups, underwent a thorough examination of his diverse investment interests outside OpenAI. These interests included companies like Worldcoin in cryptocurrencies and Helion Energy in fusion energy, as well as fundraising activities in the Middle East.
Alteman previously received $30 million from Reddit’s initial public offering in March.
OpenAI reported that after the major upheaval that Alteman faced in November, an independent investigation was conducted and it was found that he did not commit any violations in product or financial safety for OpenAI.
