Neil Freiman

As part of that trial, documents were released showing that investors running Michigan's endowments invested $20 million into a very early fundraising round in OpenAI, well before most people have heard of the small AI lab and Microsoft plowing billions into it beginning this year.

in 2019.

Speaking of billions, that's how much the University of Michigan stands to benefit from its prescient bet on OpenAI.

With the company now valued at over $850 billion, the endowment expects to earn $2 billion on its investment, which would be a tidy 9,900% return.

There are implications beyond a stronger balance sheet and bragging rights over Ohio State.

Many sports fans were quick to point out that because of its open AI windfall, Michigan could now have the upper hand in the NIL market.

Because remember, colleges pay their top players now and Michigan is rolling in the dough.

Not to mention they just won the men's college basketball championship.

Toby, it appears I went to the wrong U of M.

Right.

It is not rare for endowments to invest alongside Silicon Valley venture capitalists.

So I could put money into Koza Ventures or Reid Hoffman, who's the founder of LinkedIn's fund.

That is something that is common for endowments to do.

It is much rarer for them to do a direct stake like this because venture early stage companies can go bust venture.

much more often than they can turn into whatever OpenAI is now.

But there have been a few fun examples of endowments or schools making these bold bets early on in companies and then profiting wildly when there is an IPO.

In 2017, there was a Catholic high school also in the Bay Area.

They put a little money into Snap when they were an early company, when Snap IPO in 2017.

This high school made $24 million.

Yeah, and Sam Altman's going to have to testify this week.