OpenAI’s Startup Fund Removed Sam Altman From Its Program

(CTN News) – According to a filing with the US Securities and Exchange Commission (SEC), OpenAI has changed the governance structure of its venture capital fund that backs AI startups, so its high profile chief executive Sam Altman will no longer own or control the fund, as reported by the company.

Altman’s ownership of the Startup Fund, which was outlined in a filing on March 29, raised eyebrows for its unusual structure after Altman’s ownership had raised eyebrows.

The fund was raised by Altman from outside limited partners and he made investment decisions, but was marketed as a corporate venture arm.

OpenAI has said that Altman does not have any financial interests in the fund, despite the fact that he owns the fund. It was reported by Axios on Monday that the ownership of the company had changed.

As an official spokesperson of OpenAI explained in a statement, the fund’s initial structure of general partners (GPs) was intended as a temporary arrangement, and “this change brings further clarity to the arrangement.”

While OpenAI itself is not an investor in the OpenAI Startup Fund,

It has been raised $175 million in capital from OpenAI partners such as Microsoft.

A filing with the Securities and Exchange Commission indicates that the fund’s control has been transferred to Ian Hathaway, who has been a partner since 2021.

The fund will no longer have Altman as a general partner, as he has stepped down as a general partner.

Among the companies Hathaway has been involved with are Harvey, Cursor and Ambience Healthcare, which have all received investments from OpenAI’s accelerator program.

The former president of startup accelerator Y Combinator, Altman, had previously drawn scrutiny for his financial interest in a variety of startups outside, including Worldcoin (a crypto startup) and Helion Energy (a fusion company), as well as his fundraising activities in the Middle East.

Earlier this year, OpenAI announced an independent investigation following Altman’s dramatic departure from the company last November had concluded that Altman had committed no wrongdoing in any area of product safety or the company’s finances.

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