OpenAI Launches $400 Million Self-Funded AI Startup Fund

OpenAI is launching a second startup fund with $400 million dedicated to investing in early-stage artificial intelligence companies. The company filed paperwork regarding the fund with the United States Securities and Exchange Commission.

This new fund differs from the company's first $175 million fund from 2021, which relied on outside investors including Microsoft. The sophomore fund consists entirely of capital from the balance sheet of OpenAI, marking a shift to a self-funded model following the success of its initial fund, which backed companies such as Harvey and Cursor.

Led by General Partner Ian Hathaway, the fund aims to lead funding rounds for eight to ten companies annually. Individual investments will range from the low millions up to $100 million.