According to a source, OpenAI CEO Sam Altman gave a firm a six-figure loan so it could pay its employees after Silicon Valley Bank failed.
Sam Altman, the CEO of Open AI, is one of the tech executives funding companies in the wake of Silicon Valley Bank’s failure.
As SVB’s predicament is being resolved, Altman told Reuters that companies require money to pay their staff and liabilities.
SVB, a once-reliable bank for startups and the tech industry, was taken over by authorities on Friday.
One of the tech CEOs apparently donating money to firms worried about paying employees and remaining afloat following Silicon Valley Bank’s failure is OpenAI CEO Sam Altman, whose company created the well-known ChatGPT.
Sam Altman, the CEO of OpenAI, is one of the tech executives funding companies in the wake of Silicon Valley Bank’s failure.
As SVB’s predicament is being resolved, Altman told Reuters that companies require money to pay their staff and liabilities.
SVB, a once-reliable bank for startups and the tech industry, was taken over by authorities on Friday.
One of the tech CEOs apparently donating money to firms worried about paying employees and remaining afloat following Silicon Valley Bank’s failure is OpenAI CEO Sam Altman, whose company created the well-known ChatGPT.
According to Doktor Gurson, CEO of Rad AI, Altman responded to an email within a couple of hours with an offer of at least six figures in emergency funding so he could pay his employees, requesting only that he pay Altman back whenever he’s able.
“Sam has been giving money to struggling firms today without any documentation and just asking them to send him money whenever they can. What a myth, “Jack Altman, Sam Altman’s brother, tweeted on Saturday.
Altman is one of many tech industry leaders assisting businesses impacted by the failure of SVB, which was shut down by regulators on Friday after a bank run by customers was sparked by declining stock prices and a number of challenges. Its collapse was the second-largest bank failure in US history.
A fintech startup called Brex announced on Friday that it would provide emergency lines of credit to entrepreneurs. Henrique Dubugras, the company’s co-CEO, told Reuters that over $1.5 billion in requests from almost 1,000 companies were made over the weekend.
Much of the funds companies have on deposit would be made accessible to them, even if SVB is unable to secure a buyer or a loan over the weekend, Altman told Reuters. But in the interim, people are experiencing a true cash shortage for no fault of their own, and workers must be paid.
investors who ask "how can i be helpful": today is a good day to offer emergency cash to your startups that need it for payroll or whatever. no docs, no terms, just send money.
it's hard for me to imagine depositors actually losing money here, but so stressful in the meantime…
— Sam Altman (@sama) March 10, 2023
Gurson told Reuters that he would estimate that Altman has provided at least $1 million to his startup and others. Altman would not confirm the sum he gave to Rad AI or any other startups.
While they wait for more information regarding their accounts from the Federal Deposit Insurance Corporation, which Friday seized SVB’s assets, some company entrepreneurs told Insider’s Ryan Hogg they have no way to pay staff.