Introduction to OpenAI Startup Fund

The OpenAI Startup Fund was established in 2021 with the primary goal of investing in startups that have the potential to revolutionize various industries. To date, the fund has successfully raised $175 million for its main fund and an additional $114 million through five separate special purpose vehicles (SPVs). These SPVs serve as investment pools for specific opportunities, allowing the fund to diversify its investments and support a wide range of innovative startups.

Investment Strategy

Unlike many large tech companies, OpenAI does not use its own money to invest in startups. Instead, the OpenAI Startup Fund is raised from outside investors, including significant participation from Microsoft, as well as other OpenAI partners. This approach enables the fund to maintain its independence and focus on supporting startups that align with its mission and values.

Portfolio Companies

The OpenAI Startup Fund is managed by a dedicated team and has invested in over a dozen startups to date, according to data providers PitchBook and Crunchbase, as well as TechCrunch’s research. The following companies have announced investments from the OpenAI Startup Fund, listed alphabetically:

1. 1X: This Norwegian humanoid robot startup raised $23.5 million in a deal led by the OpenAI Startup Fund and Tiger Global in early 2023. Although OpenAI’s fund was not named as a participant in the company’s subsequent $100 million Series B announcement in January, its initial investment demonstrates the fund’s support for innovative robotics startups.
2. Ambience Healthcare: This AI-powered medical note-taking startup announced a $70 million Series B in February 2024, co-led by OpenAI’s fund and Kleiner Perkins. Ambience is among several startups, including Abridge, Nabla, Suki, and Microsoft-owned Nuance, that are developing AI medical scribes to improve healthcare outcomes.
3. Anysphere (aka Cursor): In October 2023, OpenAI’s fund led the $8 million seed round into Anysphere, the maker of AI-powered coding assistant Cursor. Although OpenAI has not been named as an investor in the company’s subsequent rounds, its initial investment highlights the fund’s interest in supporting AI-powered coding tools!.
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 in September 2024. The deal valued the six-month-old Chai Discovery at $150 million, demonstrating the fund’s focus on supporting innovative healthcare startups.
5. Class Companion: This edtech startup raised a $4 million seed round in 2023 from OpenAI’s fund and a host of angels. Class Companion helps teachers provide quick, personalized feedback to their students, aligning with the fund’s mission to support education-focused startups.
6. Descript: The collaborative audio and video editing platform raised $50 million in a Series C round led by OpenAI’s fund in late 2022. Other investors in the round included Andreessen Horowitz, Redpoint Ventures, Spark Capital, and ex-Y Combinator partner Daniel Gross. Descript has not reported any subsequent capital raises since its Series C.
7. Figure AI: AI robotics startup Figure raised $675 million in a Series B in February 2024 from Nvidia, OpenAI’s fund, Microsoft, and others. The round valued the company at $2.6 billion, highlighting the fund’s support for innovative robotics startups. Figure AI is now reportedly in talks to raise $1.5 billion at a $39.5 billion valuation.
8. Ghost Autonomy: This maker of autonomous driving software raised a $55 million Series E in April 2023, with OpenAI’s fund investing $5 million. However, the investment did not work out, and the company shut down a year later.
9. Harvey AI: This legal tech startup raised a $21 million Series A in April 2023 from OpenAI’s fund and others. The fund also participated in three subsequent rounds, including the company’s $300 million Series D, which valued Harvey at $3 billion.
10. Heeyo: Educational AI chatbot for kids Heeyo announced that it raised $3.5 million from OpenAI’s fund, Alexa Fund, Pear VC, and other investors in August 2024.
11. Kick: This company is developing AI agents that can "self-drive" bookkeeping processes. It raised a $9 million seed round co-led by General Catalyst and OpenAI’s fund in October 2024.
12. Mem: This AI-powered note-taking startup raised a $23.5 million Series A round in November 2022, led by OpenAI’s fund. Mem has not reported any subsequent funding rounds.
13. Milo: This startup is developing an AI-powered personal assistant that helps parents organize and keep track of their kids’ activities. Milo raised an undisclosed amount of pre-seed and seed funding from OpenAI’s fund, YC, and others.
14. Physical Intelligence: Foundational software for robots startup Physical Intelligence raised a $70 million seed round last March, with OpenAI’s fund participating. The fund also participated in the company’s $400 million Series A, which valued the company at more than $2 billion.
15. Speak: This AI-powered language learning app developer raised a $27 million Series B round in November 2022, led by OpenAI’s fund. In December, the fund participated in Speak’s $78 million Series C, which valued the company at $1 billion.
16. Thrive AI: Huffington Post founder Arianna Huffington and OpenAI Startup Fund announced last July that they teamed up on investing and building this "AI health coach" startup. Thrive AI aimed to raise $10 million, according to a regulatory filing.
17. Unify: This sales technology startup secured about $19 million in seed and Series A capital from the OpenAI Startup Fund, Thrive Capital, and Emergence.

These investments demonstrate the OpenAI Startup Fund’s commitment to supporting innovative startups across various industries, including healthcare, education, robotics, and more. By providing funding and resources to these companies, the fund aims to accelerate their growth and help them achieve their full potential.