A $15 million fundraising round has been secured by the OpenAI Startup Fund, an operationally separate but connected offshoot of the well-known Artificial Intelligence (AI) business OpenAI.

OpenAI Startup Fund Uses SPV to Obtain Funding

The monies were raised in new cash on or around April 19th, according to the filing with the US Securities and Exchange Commission (SEC). However, the documentation wasn’t turned in until April 25.

Remarkably, the two investors who have not yet disclosed their identities raised the $15 million tranche. Despite being named in passing in the filing, Ian Hathaway is the manager and sole partner of the OpenAI Startup Fund.

All funding was moved to OpenAI Startup Fund SPV II, L.P., a special purpose entity (SPV) in order to make the pooling of funds easier. This is the second time an SVP has been used by the OpenAI Startup Fund to raise money. The first time around, $10 million was made. Investors who make use of these SVPs typically have the ability to pool their resources and then invest directly in one company or Fund.

SVPs in the venture capital ecosystem mostly target startups that don’t suit the objectives of the fund or don’t align with its conditions. It is still possible to market the SVPs to a larger group of non-institutional investors.

Sam Altman To Concentrate on Worldcoin and OpenAI

Although OpenAI and the Startup Fund appear to be distinct entities in theory, the latter came under intense criticism a year ago when it was revealed that the fund’s CEO, Sam Altman, has long held legal control over the AI business. Specifically, the CEO raised money for the Fund from outside limited partners, one of whom was Microsoft, a key collaborator and investor in OpenAI.

Although OpenAI and the Startup Fund appear to be distinct entities in theory, the latter came under intense criticism a year ago when it was revealed that the fund’s CEO, Sam Altman, has long held legal control over the AI business. Specifically, the CEO raised money for the Fund from outside limited partners, one of whom was Microsoft, a key collaborator and investor in OpenAI.

Despite the fact that neither Altman nor OpenAI had a financial stake in the Startup Fund, this fundraiser helped to give Altman the last say over the fund’s investments. A few weeks ago, Altman made the audacious decision to give Hathaway, a former investor with the venture capital company Haystack, formal control.

Altman is presently concentrating on his work with Worldcoin and at OpenAI. Both businesses are even thinking of forming a strategic relationship with Worldcoin, which is dedicated to forming partnerships in order to increase the size of its user base and strengthen its position in the industry.