OpenAI chief helps startups affected by SVB collapse

OpenAI chief Sam Altman has provided financial support to startups affected by the regulator’s closure of Silicon Valley Bank (SVB). Reuters reports.

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According to the agency, the businessman used his own savings. Rad AI founder Dr Gurson said Altman had sent a \”six-figure amount\” covering the startup’s current expenses:

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\”I was running out of options, so I just wrote to him.\”

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Gurson added that the financier replied within two hours despite not having spoken for several years.

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Altman’s brother, Jack, noted that Sam does not ask for signatures and does not set any repayment deadlines.

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Sam has been sending stuck startups money today with no docs, just saying \”send me back whatever you can whenever you can\”. What a legend ?

— Jack Altman (@jaltma) March 11, 2023

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\”Sam is sending money to affected startups for nothing, with no documents, saying: \”Return whatever you can and whenever you can.\” What a legend,\” wrote the entrepreneur’s brother.

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Gurson confirmed this:

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\”The crazy thing here is that he isn’t an investor in our company. He asked for nothing.\”

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According to Gurman’s estimates, Altman allocated about $1 million to the startups. The entrepreneur declined to comment on the amount, but did not consider his investments \”risky\”.

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\”I remember the investors who helped me launch a startup when I needed it, and I try to pay them back in kind,\” Altman said.

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Coursera co-founder and former Google Brain head Andrew Ng noted the AI community’s cohesion in the wake of SVB’s collapse. He said people are helping each other, sharing advice, and wiring funds without documents to pay salaries.

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Dealing with SVB’s collapse, I’m seeing a lot of the best of the AI & startup world: People are helping each other, sharing tips, even wiring funds on trust and without docs so someone else can make payroll. Very encouraging seeing our community rise together to the challenge!

— Andrew Ng (@AndrewYNg) March 12, 2023

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\”In the face of SVB’s crisis I have noted the best of the AI and startup world. … Very encouraging to see our community come together to meet the challenge!\” Ng wrote.

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As reported, on March 10 the California Department of Financial Protection and Innovation closed SVB and appointed the FDIC as receiver. Regulators cited \”insufficient liquidity and insolvency\” as the reason.

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On March 12, U.S. authorities announced that all SVB depositors, as well as those of the other liquidated bank — Signature Bank — will receive funds in full.