VCs Are Giving AI Founders Ever More Leverage

These days, investors are pulling out all the stops and getting more creative to convince founders of AI startups—particularly those with experience as executives at AI labs like OpenAI and Anthropic—to take their money, VCs tell me.

The latest example we wrote about concerned Thinking Machines Lab, the buzzy startup cofounded by ex-OpenAI chief technology officer Mira Murati. As part of the company’s latest $2 billion fundraise, Murati essentially has full veto power over the board for decisions like accepting an acquisition offer, firing executives and approving executive compensation. While this level of control is unprecedented, lawyers told us, it may be becoming more mainstream. 

Greg Sands, founder and managing partner at Costanoa Ventures, told me that he saw a similar setup in a fundraising process for a defense AI startup in the last month.