The OpenAI Startup Fund, a VC firm that invests in early-stage AI startups and affiliated with OpenAI has revealed that it has raised $44 million in a financial filing. As per TechCrunch, this is the company’s fifth Special Purpose Vehicle (SPV)’and the biggest one to date.
How will it use the SPV?
VCs use the SPVs to pool money from investors and make investments beside their main fund. As per the report, a spokesperson from the investor’s side claims that this SPV will support a variety of existing portfolio companies and also make new investments. SPVs allow investors to allocate capital to high-potential investments.
Is it associated with OpnAI?
The OpenAI Startup Fund uses the name of the ChatGPT maker but OpenAI is not an investor. It is legally controlled by Sam Altman, the co-founder and CEO of OpenAI but attracts investments from LPs, including Microsoft, a big OpenAI backer, and other OpenAI partners.
Launched in 2021, the OpenAI Startup Fund is managed by a dedicated team with expertise in investing, ML, engineering, talent and operations. The firm is investing $175 million to help AI companies have a profound, positive impact on the world. It partners with early-stage startups in fields like healthcare, law, education, energy and infrastructure where AI can leave a transformative effect. As per the investor, in these sectors, AI tools can empower people by helping them be more productive.
Previous OpenAI Startup Fund SPVs
In 2024, a series of SPVs raised significant funding, highlighting an active year in capital allocation for OpenAI Startup Fund. The SPV I secured $10 million in January, followed by SPV II in April with an amended total of $24,999,947, initially disclosed as $15 million. SPV III raised $5 million in May while SPV IV amassed $29,916,411 in July. Lastly, SPV V closed the year with a substantial $44,281,693.
Portfolio of investments
The OpenAI Startup Fund has backed over a dozen startups. These include Harvey, Ambiance Healthcare, humanoid robotics firm Figure AI, and Ghost Autonomy, an autonomous driving company that recently shut down. Other notable startups backed by the US-based investor include Kick, Heeyo, Speak, Thrive Health, Unify, and Anysphere.
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