OpenAI Removes Sam Altman’s Ownership of its Startup Fund – According to a filing with the US Securities and Exchange Commission (SEC), OpenAI has revised the governance framework of its venture capital fund supporting AI startups, resulting in its prominent CEO, Sam Altman, relinquishing ownership or control of the fund.
The alteration, detailed in the March 29 filing, follows scrutiny over Altman’s management of the OpenAI Startup Fund, which garnered attention due to its unconventional setup. Despite its portrayal as a corporate venture arm, Altman raised funds from external limited partners and made investment choices independently. OpenAI clarified that Altman does not hold a financial stake in the fund despite his previous ownership involvement.
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Axios first reported on the ownership change on Monday. In a statement, a spokesperson for OpenAI said the fund’s initial general partner (GP) structure was a temporary arrangement, and “this change provides further clarity.” The OpenAI Startup Fund, comprising $175 million raised from partners like Microsoft, is actively investing, although OpenAI itself is not a direct investor in the fund.
As per the filing, control of the fund has transitioned to Ian Hathaway, who has been a partner at the fund since 2021, while Sam Altman will no longer serve as a general partner. OpenAI highlighted Hathaway’s role in overseeing the fund’s accelerator program and spearheading investments in companies such as Harvey, Cursor, and Ambience Healthcare.
Altman, formerly a president at startup accelerator Y Combinator, has faced scrutiny for his extensive investment ventures beyond OpenAI, including involvements with crypto startup Worldcoin and fusion company Helion Energy, alongside fundraising activities in the Middle East. OpenAI disclosed that an independent investigation, initiated after Altman’s abrupt departure from the company in November, concluded that he hadn’t engaged in any misconduct concerning product safety or OpenAI’s financial matters.
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