OpenAI is launching a second startup fund, funded this time from its own balance sheet. An affiliate of the ChatGPT developer submitted documents to the US Securities and Exchange Commission on Wednesday showing that it has raised a $400 million phase II fund. OpenAI established its first startup fund in 2021, raising $175 million. The initial fund was funded entirely by external investors such as Microsoft, and OpenAI itself did not contribute. An OpenAI spokesperson confirmed that the $400 million fund was funded entirely by OpenAI. The reason for this shift was the success of the first fund, which invested in companies such as Cursor, which was acquired by SpaceX this month, and legal AI startup Harvey. According to the initial fund structure, OpenAI can obtain a portion of the return on investment, but most of the financial benefits are enjoyed by limited partners.

OpenAI is launching a second startup fund, funded this time from its own balance sheet. An affiliate of the ChatGPT developer submitted documents to the US Securities and Exchange Commission on Wednesday showing that it has raised a $400 million phase II fund. OpenAI established its first startup fund in 2021, raising $175 million. The initial fund was funded entirely by external investors such as Microsoft, and OpenAI itself did not contribute. An OpenAI spokesperson confirmed that the $400 million fund was funded entirely by OpenAI. The reason for this shift was the success of the first fund, which invested in companies such as Cursor, which was acquired by SpaceX this month, and legal AI startup Harvey. According to the initial fund structure, OpenAI can obtain a portion of the return on investment, but most of the financial benefits are enjoyed by limited partners.