OpenAI’s $100M startup fund will make ‘big early bets’ with Microsoft as partner
OpenAI is launching a $100 million startup fund, which it calls the OpenAI Startup Fund, though which it and its partners will invest in early-stage AI companies tackling major problems (and productivity). Among those partners and investors in the fund is Microsoft, at whose Build conference OpenAI founder Sam Altman announced the news.
In a prerecorded video, Altman explained that this is not a typical corporate venture fund. We plan to make big early bets on a relatively small number of companies, probably not more than 10."
It's not clear exactly how the $100M will be divided or disbursed, or on what timeline, or whether this is part of a longer program. But it seems to be a limited fund, not just the 2021 round.
Altman did say that they will be looking for companies that are taking on serious issues, like healthcare, climate change, and education, where AI-powered applications or approaches could benefit all of humanity," in keeping with OpenAI's mission statement. But it would also consider productivity improvements as well, presumably like the GPT-3 powered natural language coding Microsoft showed off yesterday.
Expect an even hotter AI venture capital market in the wake of the Microsoft-Nuance deal
We know it's you, the developers, who can use powerful tools like gpt3 to create ambitious applications that will leave a positive mark on the world," said Microsoft CTO Kevin Scott in the company's stream. Microsoft is thrilled to be able to support this fund."
Companies selected for funding will receive early access to new OpenAI systems and Azure resources from Microsoft, which hopefully would allow them to spring fully formed and ready to scale from the program. OpenAI would not elaborate on the equity agreement, expectations for startups, other partners, or any further details. It's entirely possible that the $100M figure is the only thing they've actually settled on.
The minimal application process suggests they expect a large number of submissions, but if you want to throw your company into the mix, start prepping your elevator pitch. Part of the application is a one minute video (take note that Demos, music and effects are not necessary") that the selection team (the makeup of which OpenAI did not detail) will no doubt watch if a company makes it through the first round of winnowing. Hope you haven't dismantled that Zoom background just yet.
British AI startup Faculty raises $42.5M growth round led by Apax Digital Fund