OpenAI has made some changes to the governance structure of its venture capital fund that supports AI startups, removing its high-profile CEO, Sam Altman, from control of the fund. This information comes from a filing with the US Securities and Exchange Commission (SEC), as reported by Axios.
Initially, the OpenAI Startup Fund, established in 2021, listed Altman as its controller. However, this arrangement raised concerns, particularly after Altman’s brief ouster as OpenAI’s CEO in November.
While Altman was reinstated, his ownership of the fund posed potential issues for the company. Altman had no personal investment in the fund, nor did he hold any financial interest, according to a spokesperson, despite being its named controller.
The alteration, which was documented in the March 29 filing, addresses the unusual structure of Altman’s ownership of the fund. Although marketed similarly to a corporate venture arm, Altman raised the funds from external limited partners and made investment decisions himself. OpenAI clarified that Altman does not have a financial interest in the fund despite his ownership.
The OpenAI Startup Fund, with $175 million raised from partners such as Microsoft, invests in early-stage AI-driven companies in various sectors including healthcare, law, and education.
The fund saw an increase in commitments last year, now holding $325 million in gross net asset value according to an SEC filing.
Control of the fund has been transferred to Ian Hathaway, a partner at the fund since 2021, with Altman no longer serving as a general partner.
Hathaway, who has overseen the fund’s accelerator program and led investments in several companies, including Harvey, Cursor, and Ambience Healthcare, now holds the reins.
Despite Altman’s removal from the fund’s governance, his past investments outside OpenAI, including ventures in crypto and fusion technology, have drawn scrutiny.
However, an independent investigation following Altman’s temporary removal in November concluded that he did no wrongdoing in terms of product safety or OpenAI’s finances.
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