OpenAI offered a compelling proposition to private-equity firms, presenting a guaranteed minimum return of 17.5% as it seeks to establish joint ventures aimed at expanding enterprise AI adoption.
This move comes as OpenAI competes with Anthropic, which has not offered similar returns, to secure partnerships with buyout firms, Reuters reports.
OpenAI’s strategy includes providing early access to its latest AI models, enticing investors like TPG and Advent.
Both companies are seeking to partner with private-equity firms to quickly deploy AI tools across numerous private companies, enhancing the adoption and integration of their models. This strategy aims to solidify customer loyalty and prepare the companies for potential public offerings as early as this year.
The joint venture approach is designed to manage the high initial costs of customizing AI models, a move that would alleviate financial pressures before a public listing, according to Reuters. This structure also promises clearer financial reporting, which could bolster the narrative for an IPO.
The competition to secure enterprise partnerships is intense, with both OpenAI and Anthropic eager to establish their AI models within established companies.
Last week it was reported that OpenAI is set to significantly expand its workforce this year.
The firm behind ChatGPT aims to expand its workforce to about 8,000 employees by the end of 2026, nearly doubling its current staff of 4,500, according to a Fortune report.
The report, citing FT, noted new hires will mainly focus on product development, engineering, research, and sales.
OpenAI has been making significant strides. In February, the company secured $110 billion in a private round, with a pre-money valuation of $730 billion, setting the stage for a potential blockbuster IPO. This funding, which doubled the size of OpenAI's previous round, was provided by tech giants Amazon, Nvidia and SoftBank.