Updated posts 2026
In a recent development, Sam Altman, CEO of OpenAI, unveiled details about his venture capital firm’s latest fund—Hydrazine Capital’s fourth fund—which was initiated in March. Revealed through disclosure materials, this fund received a substantial investment from the University of Michigan’s noteworthy $17.9 billion endowment, as disclosed in documents obtained by Fortune via a Freedom of Information Act request.
This investment marks the University of Michigan’s second engagement with Altman’s venture capital firm. Notably, it represents the first instance of Altman’s personal venture firm securing institutional capital alongside investments from himself, his associates, and acquaintances.
The paperwork became public for a reason worth noting. Private venture funds disclose almost nothing about their investors or holdings, but public university endowments are subject to open-records laws, which means a state school’s participation can expose details that would otherwise stay sealed. Journalists have used this route for years to map private fund activity, and it explains why a fund that told the world nothing about itself ended up described in a Fortune report.
Dan Feder, senior managing director of investments at the University of Michigan’s endowment, emphasized the enduring relationship between the university and Altman’s Hydrazine IV fund. Feder stated, “Hydrazine IV is a small fund in which the University of Michigan is the only outside investor, and this is an extension of our ongoing investment strategies.” However, specific details regarding the fund’s size and focus remain undisclosed, with neither Feder nor the concerned parties offering additional comments.
Responding to inquiries, an OpenAI spokeswoman emphasized Altman’s primary commitment to his role as CEO and clarified that his investment activities constitute only a small fraction of his overall engagement. She affirmed Altman’s transparency with the board regarding his occasional investments and adherence to conflict-of-interest management protocols.
Altman, previously associated with Silicon Valley’s Y Combinator, has a long-standing investment background. He co-founded Hydrazine Capital in 2012 alongside his brother and Lattice’s CEO, Jack Altman. However, the current status of Jack Altman’s involvement remains unclear. Ryan Cohen, another partner at Hydrazine, declined comment on this matter.
This investment revelation comes on the heels of speculation following Altman’s temporary dismissal and subsequent reinstatement at OpenAI in November. The board initially cited issues related to Altman’s candor as the reason for his temporary termination.
Altman previously addressed his personal investments, emphasizing his awareness of potential conflicts of interest and his commitment to full disclosure. He emphasized this approach in an interview with The Information, stating, “Generally, I think the approach to conflict of interest is just avoid things that are directly an issue with the company you’re running and disclose everything.”
The University of Michigan’s investment history includes substantial engagements with various venture capital funds, including Sequoia Capital, Andreessen Horowitz, Accel, General Catalyst, and Y Combinator. This recent $75 million investment into Hydrazine Capital’s fourth fund signifies their consistent and growing engagement with Altman’s ventures.
Overall, Altman’s venture capital pursuits stand as a significant intersection between his leadership at OpenAI and his personal investment activities, reflecting an intricate balance between the two realms.
