SEC Filing Unveils OpenAI’s Raise of $175M for Startup Fund
In Brief
OpenAI has raised $175 million for its startup fund.
This is 75% higher than the $100 million the company previously said it had raised for the fund.
Company representatives told prospective investors that OpenAI plans to launch a second fund.
OpenAI has raised $175 million for its startup fund, according to a Securities and Exchange Commission filing.
The filing also revealed that 14 partners have invested in the fund launched in 2021. The newly revealed amount is 75% higher than the $100 million the company previously said it had raised for the fund. Apart from Microsoft, the fund was joined by Andreessen Horowitz (a16z), Peter Thiel’s Founders Fund, Redpoint Ventures, and Spark Capital.
Announcing the startup fund in 2021, OpenAI CEO Sam Altman said that the fund planned to make big, early bets on no more than ten companies.
According to a blog post published in December 2022, the fund has been created to invest in a small number of early-stage startups that are “pushing the boundaries of how powerful AI can positively impact the world and profoundly change people’s lives.”
Descript, Harvey AI, Mem, and Speak are the first four investment recipients of the startup fund. Last year, OpenAI Startup Fund led AI-powered video editor Descript’s $50 million series C funding round as well as note-taking app Mem’s $23 million round.
Other than the aforementioned recipients, the startup fund also led Oslo-based humanoid robotics company 1X’s $23.5 million Series A round in March and made a small investment of $250,000 in Charles AI. In addition to capital, companies in the OpenAI startup fund will gain early access to future OpenAI systems, support from the fund’s team, and Microsoft Azure credits.
According to Crunchbase, OpenAI has raised a total of $11.3 billion to date. In April, the company closed a $300 million share sale at a valuation of $27 billion to $29 billion. As per The Information, company representatives told prospective investors that OpenAI plans to launch a second fund, according to two sources close to the matter.
Read more:
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
More articles
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
