OpenAI CEO Sam Altman has relinquished control of the company’s $325 million venture capital fund, initially launched with support from Microsoft. The fund, established in May 2021, aimed to make substantial investments in startups with transformative AI-driven ideas. A recent regulatory filing indicates that Altman’s control has transitioned to Ian Hathaway, an OpenAI employee involved in managing the fund since its inception.
Noteworthy investments from the fund include legal tech startup Harvey, valued at $715 million, Descript, a collaborative audio editing platform valued at $553 million, and Ambience Healthcare, an AI-powered medical scribe valued at $300 million. Altman’s previous sole ownership of the fund raised questions about OpenAI’s nonprofit status, prompting scrutiny from left-leaning advocacy group Public Citizen.
Altman’s control over the venture fund was questioned earlier this year, particularly regarding its alignment with OpenAI’s nonprofit mission. The fund’s ownership structure, initially designed for rapid establishment, lacked clarity on how it would be affected by leadership changes within OpenAI. Public Citizen urged California’s Attorney General to investigate the nonprofit status, citing concerns about potential conflicts of interest.
OpenAI, while confirming the transition in fund ownership, emphasized that Altman’s involvement was temporary and did not entail personal investment or financial interest. However, the organization did not provide further details on the fund’s future structure or how it aligns with OpenAI’s nonprofit objectives.
