OpenAI has adjusted the governance structure of its venture capital fund supporting AI startups, resulting in its prominent CEO Sam Altman no longer possessing ownership or control over the fund, as stated in a filing with the US Securities and Exchange Commission (SEC). This alteration, detailed in the March 29 filing, was prompted by concerns regarding Altman’s ownership of the OpenAI Startup Fund, which deviated from typical structures.
Despite being portrayed as akin to a corporate venture arm, Altman raised funds from external limited partners and exercised investment authority. OpenAI clarified that Altman lacks a financial stake in the fund despite his ownership. The change in ownership was first reported by Axios on Monday. OpenAI’s spokesperson stated that the initial structure with Altman as the general partner (GP) was temporary, and the adjustment offers greater transparency.
The OpenAI Startup Fund, comprising $175 million from partners like Microsoft, operates independently from OpenAI itself. Ian Hathaway, a partner at the fund since 2021, now assumes control of the fund as Altman steps down as a general partner, according to the filing. Hathaway has previously managed the fund’s accelerator program and led investments in companies like Harvey, Cursor, and Ambience Healthcare.
Altman, a former president at Y Combinator, has faced scrutiny for his diverse investment interests outside OpenAI, including involvement with crypto startup Worldcoin and fusion company Helion Energy, as well as fundraising ventures in the Middle East. Following Altman’s departure from OpenAI in November, an independent investigation found no evidence of wrongdoing concerning product safety or the organization’s finances.
