OpenAI Startup Fund Secures Additional $5 Million in Latest Funding Round

By Jace Dela Cruz

May 14, 2024 04:32 AM EDT

The OpenAI Startup Fund has successfully raised an additional $5 million, according to a filing with the US Securities and Exchange Commission (SEC). 

This venture fund, which is related to but technically separate from OpenAI, invests in early-stage AI-related firms. TechCrunch reported that it had recently transferred legal control from OpenAI CEO Sam Altman to Ian Hathaway, who was previously named the sole partner and manager of the OpenAI Startup Fund. 

A photo taken on October 4, 2023 in Manta, near Turin, shows a smartphone displaying the logo of the artificial intelligence OpenAI research laboratory.
(Photo : MARCO BERTORELLO/AFP via Getty Images)

OpenAI Startup Fund Raises $5 Million More

Two investors raised this new fund and transferred it to a legal entity known as a special purpose vehicle (SPV) associated with the OpenAI Startup Fund: OpenAI Startup Fund SPV II, L.P.

According to TechCrunch, the $5 million tranche marks the third time the OpenAI Startup Fund has raised an SPV. The OpenAI Startup Fund raised $15 million for its second SPV last month and $10 million for its first SPV in February.

READ NEXT: OpenAI-Backed Ghost Autonomy Shuts Down Despite Raising Nearly $220 Million in Venture Capital Funding  

Commitments of OpenAI Startup Fund

Based on another SEC document, the OpenAI Startup Fund had $175 million in commitments last year and reported a gross net asset value of $325 million earlier this year. 

Although it functions as a corporate venture capital unit, the OpenAI Startup Fund raises capital from external limited partners, such as Microsoft, which is a major partner and investor in OpenAI. According to PitchBook data, the venture fund is backing at least 16 other startups.

READ MORE: Sam Altman Returns to OpenAI Board After Firing and Rehiring, Along With 3 New Directors

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