Based on a statement with the Securities and Exchange Commission of the United States (SEC), OpenAI has modified the legal framework of its venture capital fund, which supports AI businesses. As a result, the fund is no longer owned or controlled by its well-known executive director, Sam Altman.
The modification, detailed in the filing dated the 29th of March, was made in response to criticism of Altman’s control of the OpenAI Startup Fund due to its strange structure. Although the fund was represented as a corporation venturing arm, Altman took money for it from other shareholders, and he was the one who made the choices regarding investments. Altman lacks a financial stake in the fund despite being the owner, according to OpenAI.
Axios originally covered the ownership shift on Monday. The fund’s original general partner (GP) model was an experimental setup, according to an OpenAI representative, and “this adjustment adds greater clarification.”
Since OpenAI does not have a sponsor, the OpenAI Startup Fund is investing 175 million dollars raised from OpenAI partners like Microsoft.
According to the submission, Ian Hathaway, an associate at the firm since 2021, has become the company’s new manager. Altman will leave the fund as a general partner.
According to OpenAI, Hathaway has managed investments in businesses like Harvey, Cursor, Ambience Healthcare and the investment fund’s accelerator scheme.
Previously the head of Y Combinator, Altman has been under fire for his extensive outside interests in investments, ranging from fusion business Helion Energy to cryptocurrency startup Worldcoin, and even his fundraising operations in Middle Eastern countries.
According to OpenAI, an impartial inquiry conducted after Altman’s sudden departure from the company in November of the previous year found he had committed no financial or regulatory violations.
