OpenAI's Venture Fund: Backing Innovative Startups

# openai

Since its inception in 2021, the OpenAI Startup Fund has successfully raised $175 million for its primary fund and garnered an additional $114 million through five specialized investment vehicles aimed at specific opportunities. Unlike many large tech companies, OpenAI does not use its own funds for these investments. Instead, the fund is supported by external investors, including major OpenAI backer Microsoft and other partners, as stated on the fund's website. Managed by a dedicated team, the OpenAI Startup Fund has invested in over a dozen startups, as tracked by data providers like PitchBook and Crunchbase, along with TechCrunch's research. The following companies, listed alphabetically, have publicly disclosed receiving investments from the fund. **1X**: This Norwegian startup, focused on humanoid robotics, secured $23.5 million in early 2023, with the OpenAI Startup Fund and Tiger Global leading the round. However, the fund was not mentioned in the company's subsequent $100 million Series B announcement in January. **Ambience Healthcare**: In February 2024, this AI-driven medical note-taking startup announced a $70 million Series B, co-led by OpenAI's fund and Kleiner Perkins. Ambience is part of a growing field of AI medical scribe startups, including Abridge, Nabla, Suki, and Microsoft-owned Nuance. **Anysphere (aka Cursor)**: OpenAI's fund spearheaded an $8 million seed round for Anysphere, creators of the AI-powered coding assistant Cursor, in October 2023. The fund was not listed in later funding rounds for the company. **Chai Discovery**: This startup, working on an open-source AI model for drug discovery, raised $30 million in a seed round last September, led by Thrive Capital and OpenAI's fund. Just six months old at the time, Chai Discovery was valued at $150 million. **Class Companion**: This edtech startup, aiding teachers in providing personalized feedback, raised a $4 million seed round in 2023 with support from OpenAI's fund and various angel investors. **Descript**: Shortly after ChatGPT's launch in late 2022, this collaborative audio and video editing platform secured a $50 million Series C round led by OpenAI's fund. Other investors included Andreessen Horowitz, Redpoint Ventures, Spark Capital, and former Y Combinator partner Daniel Gross. No further funding has been reported since. **Figure AI**: In February 2024, this AI robotics startup raised a $675 million Series B from investors including Nvidia, OpenAI's fund, and Microsoft, valuing the company at $2.6 billion. Figure AI is now reportedly negotiating a $1.5 billion raise at a $39.5 billion valuation. **Ghost Autonomy**: This autonomous driving software developer raised a $55 million Series E in April 2023, with OpenAI's fund contributing $5 million. Unfortunately, the company ceased operations a year later. **Harvey AI**: This legal tech startup raised a $21 million Series A in April 2023, with OpenAI's fund among the investors. The fund also participated in three subsequent rounds, including a $300 million Series D last month, valuing Harvey at $3 billion. **Heeyo**: This educational AI chatbot for kids announced a $3.5 million raise in August, backed by OpenAI's fund, Alexa Fund, Pear VC, and others. **Kick**: Developing AI agents for self-driven bookkeeping, Kick raised a $9 million seed round in October, co-led by General Catalyst and OpenAI's fund. **Mem**: This AI-powered note-taking startup secured a $23.5 million Series A in November 2022, led by OpenAI's fund. No further funding rounds have been disclosed. **Milo**: Focused on an AI-powered personal assistant for parents to manage their children's activities, Milo raised an undisclosed amount in pre-seed and seed funding from OpenAI's fund, YC, and other investors. **Physical Intelligence**: This startup, which develops foundational software for robots, raised a $70 million seed round last March, with OpenAI's fund involved. The fund also participated in the company's $400 million Series A, which valued the company at over $2 billion. Other investors included Lux Capital, Sequoia, and Jeff Bezos. **Speak**: This AI-powered language learning app developer raised a $27 million Series B in November 2022, led by OpenAI's fund. The fund also took part in the company's $78 million Series C in December, valuing Speak at $1 billion. **Thrive AI**: Launched in July last year, this "AI health coach" startup, a collaboration between Huffington Post founder Arianna Huffington and OpenAI's fund, aimed to raise $10 million, as per a regulatory filing. **Unify**: This sales technology startup raised approximately $19 million in seed and Series A funding from the OpenAI Startup Fund, Thrive Capital, and Emergence.

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