The OpenAI Startup Fund, an early-stage AI investor affiliated with OpenAI, has raised over $44 million for its fifth Special Purpose Vehicle (SPV), its largest to date. This brings the total amount raised by the Fund in 2024 to $114.2 million, according to recent financial filings.

Launched in 2021, the OpenAI Startup Fund has an unusual structure. While it uses OpenAI's name, the organization itself is not an investor. Instead, the Fund has raised money from outside limited partners, including Microsoft, a significant backer of OpenAI, and "other OpenAI partners," according to its website. Initially legally controlled by OpenAI co-founder and CEO Sam Altman, the Fund's control was transferred to general partner Ian Hathaway earlier this year.

Special Purpose Vehicles (SPVs) are typically used by venture capital firms to pool money from investors and invest in specific opportunities outside their main fund. However, the OpenAI Startup Fund has remained tight-lipped about the exact purpose of these funds. A spokesman from OpenAI told TechCrunch that this latest SPV "will be used to support a variety of existing portfolio companies and to make new investments."

The Fund's use of SPVs allows it to "allocate capital to high-potential investments opportunistically," according to the spokesman. This approach has enabled the Fund to raise a significant amount of capital in a short period, with five separate SPVs disclosed this year: SPV I ($10 million), SPV II ($24.99 million), SPV III ($5 million), SPV IV ($29.92 million), and SPV V ($44.28 million).

Despite the flurry of activity, the OpenAI Startup Fund's website remains sparse, with its most recent news posting dating back a year. The website only discloses a few of its investments, including legal AI startup Harvey and AI note-taking app Mem. However, the Fund is more active than its website suggests, with notable investments this year including Thrive Health, an AI health venture between Sam Altman and Ariana Huffington, and warm outbound startup Unify.

The Fund is also a seed investor in Anysphere, which is currently in the middle of a venture capital bidding war thanks to its AI code assistant Cursor. These SPVs are in addition to the Fund's original capital of $175.25 million, raised back in October 2021.

The OpenAI Startup Fund's aggressive fundraising and investment activity reflect the growing interest in AI startups and the increasing competition for capital in this space. As AI continues to transform industries and create new opportunities, the Fund's ability to allocate capital opportunistically will likely play a significant role in shaping the future of AI innovation.

With its latest SPV, the OpenAI Startup Fund has solidified its position as a major player in the AI startup ecosystem. As the Fund continues to invest in and support AI startups, its impact on the industry will be closely watched by investors, entrepreneurs, and AI enthusiasts alike.