University of Michigan’s $20 Million Stake in OpenAI Now Valued at $2 Billion

Court documents from the Musk v. Altman trial revealed that the University of Michigan invested 20 million dollars in OpenAI before the release of ChatGPT and before Microsoft’s billion dollar commitment, according to The Next Web. The university’s stake is now valued at around two billion dollars.

The investment was made when OpenAI was still a nonprofit research lab without a commercial product. Michigan’s endowment joined early backers such as Khosla Ventures, Reid Hoffman’s Aphorism Foundation, a Y Combinator fund, and the trust of Gmail creator Paul Buchheit. These early contributions preceded Microsoft’s 2019 investment and the launch of ChatGPT in 2022.

The documents show that Michigan’s 20 million dollar investment converted to equity following OpenAI’s shift to a for-profit structure in 2025. The restructuring created OpenAI Group PBC, with the OpenAI Foundation retaining a minority stake and other investors, including Michigan, receiving equity positions.

Michigan’s endowment, valued at roughly 18 billion dollars in 2025, has also invested in other ventures connected to OpenAI’s leadership. In 2023 it committed 75 million dollars to Hydrazine Capital, a fund led by Sam Altman, later increasing that amount to 180 million dollars. These investments reflect a broader strategy of allocating to artificial intelligence and technology-focused assets.

OpenAI’s most recent funding round in March 2026 valued the company at 852 billion dollars. If the university retains its position through a potential initial public offering expected later in 2026, its return could exceed one hundred times the original investment.