https://www.reuters.com/technology/openai-removes-sam-altmans-ownership-its-startup-fund-2024-04-01/ Skip to main content Exclusive news, data and analytics for financial market professionals Learn more aboutRefinitiv Reuters home * World Browse World + Africa + Americas + Asia Pacific + China + Europe + India + Israel and Hamas at War + Japan + Middle East + United Kingdom + Ukraine and Russia at War + United States + US Elections + Reuters Next * Business Browse Business + Aerospace & Defense + Autos & Transportation + Davos + Energy + Environment + Finance + Healthcare & Pharmaceuticals + Media & Telecom + Retail & Consumer + Future of Health + Future of Money + Take Five + World at Work * Markets Browse Markets + Asian Markets + Carbon Markets + Commodities + Currencies + Deals + Emerging Markets + ETFs + European Markets + Funds + Global Market Data + Rates & Bonds + Stocks + U.S. Markets + Wealth + Macro Matters * Sustainability Browse Sustainability + Boards, Policy & Regulation + Climate & Energy + Land Use & Biodiversity + Society & Equity + Sustainable Finance & Reporting + The Switch + Reuters Impact * Legal Browse Legal + Government + Legal Industry + Litigation + Transactional + US Supreme Court * Breakingviews Browse Breakingviews + Breakingviews Predictions * Technology Browse Technology + Cybersecurity + Space + Disrupted + Reuters Momentum * Investigations * More Sports + Athletics + Baseball + Basketball + Cricket + Cycling + Formula 1 + Golf + NFL + NHL + Soccer + Tennis ScienceLifestyleGraphics PicturesPodcastsFact CheckVideoSponsored Content + Reuters Plus + Coupons My View Register * Technology OpenAI removes Sam Altman's ownership of its Startup Fund By Krystal Hu April 1, 20247:24 PM UTCUpdated ago * * * * * * * * 54th WEF annual meeting in Davos Sam Altman, CEO of OpenAI, attends the 54th annual meeting of the World Economic Forum, in Davos, Switzerland, January 18, 2024. REUTERS/Denis Balibouse/File Photo Purchase Licensing Rights, opens new tab April 1 (Reuters) - OpenAI has changed the governance structure of its venture capital fund that backs AI startups, so its high profile chief executive Sam Altman no longer owns or controls the fund, according to a filing with the US Securities and Exchange Commission (SEC). 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 (MSFT.O), opens new tab, 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. Altman, a former president at startup accelerator Y Combinator, has previously drawn scrutiny on his sprawling investment interest outside OpenAI, from crypto startup Worldcoin to fusion company Helion Energy, as well as fundraising activities in the Middle East. OpenAI said an independent investigation following Altman's dramatic ouster of the company last November concluded he did no wrongdoing in terms of product safety or OpenAI's finances. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. Reporting by Krystal Hu in New York; Editing by Josie Kao Our Standards: The Thomson Reuters Trust Principles., opens new tab * * * * * Purchase Licensing Rights [2f90d562-6] Krystal Hu Thomson Reuters Krystal reports on venture capital and startups for Reuters. She covers Silicon Valley and beyond through the lens of money and characters, with a focus on growth-stage startups, tech investments and AI. She has previously covered M&A for Reuters, breaking stories on Trump's SPAC and Elon Musk's Twitter financing. Previously, she reported on Amazon for Yahoo Finance, and her investigation of the company's retail practice was cited by lawmakers in Congress. Krystal started a career in journalism by writing about tech and politics in China. 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