OpenAI Removes Sam Altman's Ownership of Its Startup Fund

According to a filing with the SEC, OpenAI has removed CEO Sam Altman's ownership and control of the company's venture capital fund that backs AI startups. Reuters reports: The change, documented in the March 29 filing, came after Altman's ownership of the OpenAI Startup Fund raised eyebrows for its unusual structure--while being marketed similar to a corporate venture arm, the fund was raised by Altman from outside limited partners and he made investment decisions. OpenAI has said Altman does not have financial interest in the fund despite the ownership.

Axios first reported on the ownership change on Monday. In a statement, a spokesperson for OpenAI said the fund's initial general partner (GP) structure was a temporary arrangement, and 'this change provides further clarity.' The OpenAI Startup Fund is investing $175 million raised from OpenAI partners such as Microsoft, although OpenAI itself is not an investor. Control of the fund has been moved over to Ian Hathaway, a partner at the fund since 2021, according to the filing. Altman will no longer be a general partner at the fund. OpenAI said Hathaway has overseen the fund's accelerator program and led investments in such companies as Harvey, Cursor and Ambience Healthcare.

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