openai’s $100m startup fund will make ‘big early bets’ with microsoft as partner

OpenAI Announces $100 Million Startup Fund

OpenAI has announced the launch of a new $100 million fund, officially named the OpenAI Startup Fund. This initiative will see investments made in early-stage AI companies focused on addressing significant challenges and enhancing productivity.

Microsoft is a key partner and investor in this fund. The announcement was made by OpenAI founder Sam Altman during Microsoft’s Build conference.

Fund Details and Investment Strategy

Altman clarified that this fund differs from conventional corporate venture capital. The intention is to make substantial, early-stage investments in a limited number of companies – likely no more than ten.

The specific allocation and disbursement timeline for the $100 million remain unclear. It is currently unknown if this represents a single, isolated funding round or a component of a broader, ongoing program.

Focus Areas for Investment

OpenAI will prioritize companies tackling critical global issues. These include areas such as healthcare, climate change, and education.

The fund will also consider applications focused on productivity enhancements. This aligns with demonstrations, like the GPT-3 powered coding tools showcased by Microsoft.

Support for Selected Startups

Microsoft CTO Kevin Scott emphasized the role of developers in leveraging tools like GPT-3. He stated Microsoft’s enthusiasm for supporting the fund.

Companies chosen to receive funding will gain privileged access to both upcoming OpenAI systems and Azure resources provided by Microsoft. This support is designed to facilitate rapid scaling and development.

OpenAI has not disclosed details regarding equity agreements, expectations for participating startups, or additional partners.

Application Process

The streamlined application process suggests OpenAI anticipates a high volume of submissions. Interested companies should prepare a concise elevator pitch.

Applicants are required to submit a one-minute video. The submission guidelines indicate that elaborate production elements, such as demos, music, or special effects, are unnecessary.

The selection team, whose composition remains undisclosed, will review these videos during the initial screening phase.

Companies should ensure their video presentation is well-prepared.