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OpenAI has changed the governance structure of its venture capital fund, which supports AI startups, removing its high-profile CEO, Sam Altman, from control. This information comes from a filing with the US Securities and Exchange Commission (SEC), as reported by Axios.
The OpenAI Startup Fund, established in 2021, initially listed Altman as its controller. However, this arrangement raised concerns, mainly after Altman’s brief ouster as OpenAI’s CEO in November.
While Altman was reinstated, his fund ownership posed potential issues for the company. According to a spokesperson, despite being its named controller, Altman had no personal investment in the fund or financial interest.
The alteration, documented in the March 29 filing, addresses the unusual structure of Altman’s fund ownership. 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 has no financial interest in the fund, despite his ownership.
The OpenAI Startup Fund, which has raised $175 million 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 and, according to an SEC filing, now has a gross net asset value of $325 million.
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 crypto and fusion technology ventures, have drawn scrutiny.
