In a significant move reported by the US Securities and Exchange Commission (SEC), OpenAI has revamped the governance of its venture capital fund supporting AI startups. The restructuring, detailed in a filing dated March 29, eliminates the direct ownership and control previously held by high-profile CEO Sam Altman.
Altman's ownership of the OpenAI Startup Fund had raised eyebrows due to its unconventional structure. Despite being positioned akin to a corporate venture arm, the fund was initially raised by Altman from external limited partners, with him solely making investment decisions. Although Altman claimed no financial stake in the fund, questions lingered about his influence.
Axios was the first to report on the ownership transition, revealing that control of the fund has shifted to Ian Hathaway, a longstanding partner since 2021. Altman will no longer serve as a general partner, marking a notable change in leadership.
The OpenAI Startup Fund, fueled by a $175 million investment from partners like Microsoft, operates independently of OpenAI's direct involvement as an investor. Hathaway, now at the helm, has been instrumental in spearheading the fund's accelerator program and steering investments in notable ventures such as Harvey, Cursor, and Ambience Healthcare.
Altman, renowned for his tenure at startup accelerator Y Combinator, has faced scrutiny over his extensive investment portfolio beyond OpenAI. From crypto startup Worldcoin to fusion company Helion Energy, his involvement in various ventures has drawn attention. Additionally, fundraising endeavors in the Middle East raised questions about potential conflicts of interest.
OpenAI disclosed that an independent investigation conducted following Altman's abrupt departure from the company in November found no evidence of wrongdoing concerning product safety or the organization's financial integrity.