The OpenAI Startup Fund, launched in 2021, has raised $175 million for its main fund and an additional $114 million through special purpose vehicles. Supported by notable investors like Microsoft, the fund has invested in over a dozen startups spanning various fields, including healthcare, education, and robotics, showcasing its commitment to fostering innovation in AI and technology.
Since its establishment in 2021, the OpenAI Startup Fund has successfully raised $175 million for its main fund, along with an additional $114 million across five special purpose vehicles dedicated to specific investment opportunities. OpenAI emphasizes that it does not utilize company funds for startup investments, instead relying on external investors including significant backers such as Microsoft.
Managed by a dedicated team, the OpenAI Startup Fund has invested in over a dozen startups. This research incorporates data from PitchBook, Crunchbase, and TechCrunch to provide an overview of these investments, organized alphabetically:
1. 1X: The Norwegian humanoid robot startup, led by the OpenAI Startup Fund and Tiger Global, raised $23.5 million in early 2023. The fund’s involvement was not disclosed during the startup’s $100 million Series B announcement in January.
2. Ambience Healthcare: This AI healthcare startup focused on medical note-taking secured a $70 million Series B in February 2024, co-led by OpenAI’s fund and Kleiner Perkins. It joins peers like Abridge and Microsoft-owned Nuance in creating AI medical scribes.
3. Anysphere (Cursor): In October 2023, OpenAI’s fund led an $8 million seed round for Anysphere, known for its AI-powered coding assistant, Cursor. The fund’s participation in subsequent investment rounds was not confirmed.
4. Chai Discovery: This startup, which is developing an open source AI foundational model for drug discovery, raised $30 million in a seed round led by Thrive Capital and OpenAI’s fund last September, valuing the company at $150 million.
5. Class Companion: An edtech startup that facilitates personalized feedback for teachers raised $4 million in a seed round from OpenAI’s fund along with various angel investors in 2023.
6. Descript: This collaborative audio and video editing platform raised $50 million in a Series C round, shortly after the introduction of ChatGPT in late 2022. Other notable investors included Andreessen Horowitz and Redpoint Ventures.
7. Figure AI: The AI robotics company raised $675 million in a Series B in February 2024 from several investors, including OpenAI’s fund and Nvidia, valuing it at approximately $2.6 billion.
8. Ghost Autonomy: This autonomous driving software provider raised $55 million in Series E funding in April 2023, with OpenAI’s fund investing $5 million. The company ultimately ceased operations a year later.
9. Harvey AI: The legal tech startup raised $21 million in Series A funding in April 2023 from OpenAI’s fund and others, with subsequent rounds including a notable $300 million Series D, valuing the company at $3 billion.
10. Heeyo: This educational AI chatbot for children reported raising $3.5 million from OpenAI’s fund, Alexa Fund, and additional investors in August.
11. Kick: Kick is developing AI agents for bookkeeping processes and raised $9 million in a seed round co-led by General Catalyst and OpenAI’s fund in October.
12. Mem: An AI note-taking startup that raised $23.5 million in its Series A round in November 2022, led by OpenAI’s fund. Mem has not reported further funding rounds since.
13. Milo: This startup is working on an AI-powered personal assistant for parents, which received undisclosed pre-seed and seed funding from OpenAI’s fund and Y Combinator.
14. Physical Intelligence: This foundational software for robotics raised $70 million in seed funding last March, with OpenAI’s fund participating. The fund also engaged in the company’s $400 million Series A.
15. Speak: The language learning app provider raised $27 million in its Series B round in November 2022, led by OpenAI’s fund. The fund later participated in Speak’s $78 million Series C.
16. Thrive AI: Founded by Arianna Huffington, Thrive AI, backed by OpenAI Startup Fund, aims to establish an AI health coach service, previously seeking $10 million.
17. Unify: The sales technology firm secured approximately $19 million from OpenAI Startup Fund, Thrive Capital, and Emergence across seed and Series A funding rounds.
In conclusion, the OpenAI Startup Fund has established a significant presence in the investment landscape by supporting diverse startups across various sectors. With the backing of prominent investors like Microsoft, the fund has facilitated substantial funding rounds that enable innovative solutions within healthcare, education, robotics, and technology. Through its ongoing commitments, the fund remains a key player in fostering AI-driven advancements and entrepreneurial growth.
Original Source: techcrunch.com
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