Sam Altman Receives $75 Million From the University of Michigan for New Venture Capital Fund: Report

By Jace Dela Cruz

Dec 20, 2023 05:04 AM EST

OpenAI CEO Sam Altman has reportedly secured a $75 million investment for his venture capital firm, Hydrazine Capital, from the University of Michigan. 

According to a report by Fortune, the university, with a substantial $17.9 billion endowment, has a history of investing in prominent funds and has previously invested directly in OpenAI and its corporate venture fund. Thus, this marks the second investment by the University of Michigan in Altman's venture capital firm. 

A Year In TIME
(Photo : Mike Coppola/Getty Images for TIME)
NEW YORK, NEW YORK - DECEMBER 12: Sam Altman speaks onstage during A Year In TIME at The Plaza Hotel on December 12, 2023 in New York City.

Venture Firm of OpenAI CEO Sam Altman

The disclosure materials for a new venture capital fund were reportedly filed by Sam Altman only a few months after the AI-powered chatbot ChatGPT went live.

Altman's venture firm, Hydrazine Capital, launched its fourth fund in March and received the $17.9 billion check sometime before the end of June.

Dan Feder, senior managing director of investments at the University of Michigan's endowment, told Fortune they have a longstanding relationship with Altman and Hydrazine IV. 

"Hydrazine IV is a small fund in which the University of Michigan is the only outside investor, and this is an extension of our ongoing investment strategies," Feder said.

The fund's exact size or focus was unclear as it remains undisclosed because there has been no statement from Altman, Hydrazine, or the University of Michigan.

READ ALSO: Elon Musk's AI Startup X.AI Seeks to Raise $1 Billion From Equity Investors

OpenAI's Response to the Venture Firm of Sam Altman

OpenAI's response to the matter emphasized Sam Altman's dedication to his role as CEO, with an OpenAI spokeswoman telling Fortune that he spends only "a small fraction of his time investing."

The statement also assured transparency with the board regarding Altman's occasional investments and a commitment to managing potential conflicts of interest.

This news emerges amid speculation regarding Altman's personal venture investments, which became a subject of discussion after his temporary suspension and subsequent reinstatement at OpenAI in November. 

READ MORE: Despite AI Hype, New Data Shows Only Few US Companies Are Actually Using It

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