OpenAI CEO Sam Altman announced that he is offering $2 million worth of OpenAI API tokens to every startup in Y Combinator’s current Spring 2026 batch. However, the catch is, he wants equity in exchange.
Altman made the announcement during closed-door event for current YC batch on Tuesday night.
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! https://t.co/YSHYJoutuf
— Sam Altman (@sama) May 20, 2026
Y Combinator operates as world’s most prestigious startup accelerator having backed companies including Airbnb, Stripe, DoorDash, and Reddit. The Silicon Valley-based program accepts approximately 1% of applicants providing $500,000 investment for 7% equity stake. Startups receive three months of intensive mentorship, access to powerful Silicon Valley network, and participation in Demo Day before investors.
Participating startups will sign uncapped Simple Agreement for Future Equity according to person familiar with offering. Y Combinator has about 169 startups in current cohort according to directory. Moreover, token budget could provide access to nearly one trillion tokens under certain usage assumptions.
Y Combinator accepts applications from startups anywhere in world including Pakistan. Program runs in-person in San Francisco requiring founders commit three months full-time.
All a Pakistani startup needs is to have a dedicated founder team, working prototype or clear idea, and willingness to relocate temporarily. Application deadlines typically fall mid-winter with on-time deadline guaranteeing decision notification. International founders get accepted regularly, though acceptance rate remains highly competitive at approximately 1%.
On the other hand, some investors warned if founders take tokens, OpenAI could study exactly what that startup is doing. This might lead to the largest AI company to copy the idea, and put an app into free offering.
Fair warning, YC founders: 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! https://t.co/CRTRSXZDwu
— @jason (@Jason) May 20, 2026
Y Combinator already takes 7% stake, meaning additional equity surrender raises concerns. Seed investors frequently take 20% too while startups need equity as compensation for early employees.
The real risk here is that a startup might burn through its OpenAI token budget without achieving much in return, all while giving up some equity along the way. However, this might still be a better option than shelling out cash for those tokens, which can be even harder to come by at that early stage.
