If you think that everything that happens behind closed doors at OpenAI is a soap opera that is very difficult to understand, you are right. After the scandal at the beginning of the year, with the dismissal of Sam Altman and his return in less than four days, now another chapter arrives.
OpenAI has removed Sam Altman as the owner and controller of the OpenAI Startup Fund, a venture capital fund associated with the company. According to Axios, control of the fund has been transferred to Ian Hathaway, who has been involved in its management since its launch in 2021.
The leadership change was reported in a presentation to the SEC on March 29th after it “raised eyebrows” due to its unusual structure. Explaining Altman’s leadership in the fund so far, OpenAI said:
“As previously communicated, the initial structure of the GP fund was a temporary agreement and did not involve any personal investment or financial interest from Sam. This change brings more clarity.”
A dismissal that makes sense, but smells bad
The reason why the OpenAI Startup Fund raised questions was because it was not and is not owned by OpenAI, despite its name. Its legal owner is Sam Altman. It also has external limited partners, including Microsoft, which Axios describes as unusual for a venture capital firm, but it is not unique.
OpenAI said in February that the reason behind the structure was so that the fund could start quickly, and the fastest way to do it was to put it in Altman’s name. As they have been keen to remind, OpenAI said in February that the decision was only intended to be temporary.
The new manager of the fund, Ian Hathaway, has directed his accelerator program and led investments in different startups such as Harvey, Cursor, and Ambience Healthcare. This experience should mean that the fund is in good hands despite Sam Altman’s departure.
