According to a filing with the US Securities and Exchange Commission (SEC), OpenAI has modified the governance structure of its venture capital fund, which supports AI businesses. As a result, the fund is no longer owned or controlled by its well-known chief executive, Sam Altman.
The modification, which is detailed in the filing dated March 29, was made in response to criticism of Altman’s control of the OpenAI Startup Fund due to its peculiar structure. Although the fund was represented as a corporate venture arm, Altman sought money for it from outside limited partners, and he was the one who made the investment decisions. Despite being the owner, Altman does not have a financial stake in the fund, according to OpenAI.
The ownership shift was originally covered by Axios on Monday. The fund’s original general partner (GP) structure was a temporary setup, according to an OpenAI representative, and “this change provides further clarity.”
Although OpenAI is not an investor, the $175 million raised from OpenAI partners including Microsoft (MSFT.O) is going to the OpenAI Startup Fund.
According to the filing, Ian Hathaway, a partner at the firm since 2021, has taken over as 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, and Ambience Healthcare as well as the fund’s accelerator program.
Former president of Y Combinator, Altman has been under fire in the past for his extensive outside interests in investments, ranging from fusion business Helion Energy to cryptocurrency startup Worldcoin, as well as his fundraising operations in the Middle East.
According to OpenAI, an impartial inquiry conducted after Altman’s abrupt departure from the company in November of last year found he had committed no financial or product safety violations.
