Andreessen Horowitz has agreed to return nearly $120 million to investors in OpenAI as part of the venture capital firm’s proposal to oversee the artificial intelligence company during a transition period.

Andreessen Horowitz has agreed to return nearly $120 million to investors in OpenAI as part of the venture capital firm’s proposal to oversee the artificial intelligence company during a transition period.<br><br>The proposal is a bid by a16z – as the firm is known – to fill a leadership vacuum at OpenAI, which lost its chief executive Sam Altman and the head of its DALL-E image-generating model, Boris Dayma, in a surprise corporate coup last week.<br><br>Investors had outspokenly criticized a16z for its role in backing the failed coup to unseat Altman, including the venture capital firm’s plan to install a16z general partner Chris Dixon as temporary chief executive of OpenAI.<br><br>According to a person familiar with the deal, the repayment will be evenly split by a16z’s “growth” fund and “bio” fund – both of which poured capital into OpenAI last year. Those funds will return $60 million apiece to their respective investors, the person said.<br><br>The repayment was disclosed in an email to OpenAI investors last week, according to the person, and highlights the extreme measures being taken by a16z to satisfy investor criticism.<br><br>The proposal is “a peace offering”, according to another person familiar with the outspoken opposition from investors, which has included warnings that they would potentially sue or claw back capital from the venture capital firm.<br><br>The email, which was circulated by OpenAI’s board, outlined the proposal for a16z to appoint an interim chief executive to lead the company during a transition period that was expected to last “a few weeks”, the person said.<br><br>Meanwhile, rival tech investor Microsoft – which has invested $13 billion into OpenAI – threw its weight behind the venture capital firm’s proposal.<br><br>Insiders said a16z was not the only venture capital firm that had pursued the interim chief executive position. However, Microsoft’s backing “carried a lot of weight”, one person said.