OpenAI CEO Sam Altman’s ‘mic drop’ offer to Y combinator startups: Free AI tokens worth $2 million in exchange for …

Sam Altman has offered to invest in every startup from the latest Y Combinator batch through a new deal involving OpenAI credits instead of cash. The OpenAI Chief announced the same during a Y Combinator event stating that the AI company will provide $2 million worth of AI tokens to each startup in exchange for equity. “I am excited to see what will happen with tokenmaxxing startups, both for how they work internally and the products they can build. OpenAI offered to invest $2M in tokens into every startup in the current yc batch. happy building!,” Altman wrote in the post.

The move could help startups reduce their AI infrastructure costs while also encouraging them to build products using OpenAI’s technology. The current Y Combinator batch reportedly includes around 169 startups.

According to a Tech Crunch report, the investment will be structured through an “uncapped SAFE,” a common startup funding agreement used by Y Combinator. This means OpenAI’s equity stake in each company will be decided later, when the startup raises its first major funding round and receives a formal valuation.

Y Combinator managing director Jared Friedman told the publication that the deal would likely convert during a Series A funding round.

How the deal may be a win for OpenAI

The report said the arrangement benefits OpenAI in multiple ways. Besides gaining ownership stakes in startups that may become successful in the future, the company also increases the chances that these startups will build their products using OpenAI models rather than competing services such as Anthropic’s Claude.

TechCrunch noted that as AI computing costs continue to fall, OpenAI may eventually spend very little on the AI tokens it is giving away today, while still receiving valuable equity in return.

Some investors warn startups to be careful

The offer has already sparked debate among startup founders and investors. Supporters of the plan argue that AI costs are one of the biggest expenses for young startups, and free OpenAI credits could help them save cash during their early stages.

However, some investors warned founders to think carefully before giving away additional ownership in their companies. Seed investor Jason Calacanis raised concerns on X, saying, “If you take these tokens, there’s a non-zero chance that OpenAI will study exactly what your startup is doing, copy your idea and put your app into their free offering. This is the classic platform playbook — be careful, founders!”