OpenAI Startup Fund
The OpenAI Startup Fund is a venture fund set up by OpenAI in May 2021 with an initial $100 million from MicrosoftMicrosoftMicrosoft is a technology company founded by Bill Gates and Paul Allen in 1975 and headquartered in Redmond, Washington, with businesses spanning Windows, Microsoft 365, Azure, enterprise software, artificial intelligence, gaming and devices.Open the full entry and other partners to invest in early-stage AI companies. It had raised about $175 million by 2023, and control passed to Ian Hathaway in March 2024.
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Key facts
May 26, 2021A $100 Million Fund
On May 26, 2021, OpenAI announced the OpenAI Startup Fund, a $100 million fund managed by OpenAI with investment from Microsoft and other partners; it targeted early-stage startups in fields where AI could be transformative, such as health care, climate change and education, as well as productivity tools.[1]
Sam AltmanSam AltmanSam Altman is an entrepreneur and investor, and the co-founder and chief executive officer of OpenAI. He previously served as president of Y Combinator and founded the location-based social service Loopt. He also helped found Tools for Humanity and Merge Labs, has invested in energy and life sciences ventures, and has driven public discussion of AI governance, employment, and wealth distribution.Open the full entry said the fund would make “big, early bets” on probably no more than 10 companies; selected companies would get early access to future OpenAI systems, support from OpenAI’s team and Microsoft Azure credits.[1]
December 1, 2022First Investments
On December 1, 2022, the fund announced its first four portfolio companies: Descript, AI-powered video and podcast editing software founded by former Groupon CEO Andrew Mason; the legal AI Harvey; Mem, a self-organizing workspace app; and Speak, an AI language tutor.[2]
May 2023Raises About $175 Million
In May 2023 a filing with the U.S. Securities and Exchange Commission showed that the OpenAI Startup Fund had raised $175.25 million from 14 unnamed investors, more than the $100 million initially planned.[3]
March 29, 2024Sam Altman Steps Back as General Partner
Sam Altman had raised the fund from outside limited partners and made its investment decisions. A filing with the U.S. Securities and Exchange Commission dated March 29, 2024, showed that he no longer owned or controlled the fund and was no longer a general partner; control passed to Ian Hathaway, a partner at the fund since 2021.[4]
Sources
- OpenAI launches $100 million startup fund with backing from Microsoft (opens in a new window)
- ChatGPT Creator OpenAI Announces First Investments From $100 Million Artificial Intelligence Fund (opens in a new window)
- OpenAI Startup Fund raises over $175m (opens in a new window)
- OpenAI removes Sam Altman's ownership of its Startup Fund (opens in a new window)