The OpenAI Startup Fund, an early-stage investor affiliated with OpenAI, has announced the successful raising of $44 million for its fifth Special Purpose Vehicle (SPV), marking the largest such raise to date. Launched in 2021, the fund was originally controlled by OpenAI co-founder and CEO Sam Altman but is now legally overseen by general partner Ian Hathaway, following Altman’s relinquishment of control earlier this year. Despite using OpenAI’s name, the fund itself is not directly supported by OpenAI but has raised capital from external limited partners, including OpenAI’s major backer, Microsoft, and other partners.
SPVs are a common investment structure used by venture capitalists to pool capital for targeted investments, typically outside of a main fund. In this case, the OpenAI Startup Fund has been actively utilizing SPVs throughout 2024, with five separate vehicles contributing to the fund’s total of $114.2 million raised this year alone. The latest raise of $44.2 million will help the fund continue its investment in AI startups, supporting both existing portfolio companies and new ventures with promising technologies.
Though the fund’s website reveals limited information about specific investments, it is known that the fund has backed notable startups such as legal AI company Harvey and the AI-powered note-taking app Mem. This year, it also made investments in Thrive Health, an AI health venture co-founded by Sam Altman and Arianna Huffington, as well as Unify, a warm outbound startup. One of its portfolio companies, Anysphere, has recently gained attention in the venture capital community due to its AI code assistant, Cursor, sparking a bidding war among investors.
The OpenAI Startup Fund’s continued success highlights the growing influence of AI technologies across various industries and the increasing interest in venture capital for AI-driven startups. With its strong financial backing and strategic investments, the fund is positioned to play a significant role in shaping the future of AI innovation. As the fund continues to raise capital through SPVs, it is likely to remain an important player in the evolving landscape of AI venture capital.
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