Stripe clinches over $7 billion deal to buy AI firm OpenRouter
The deal, just months after OpenRouter raised money at a reported $1.3 billion valuation, underscores the demand from businesses to find the most cost-friendly AI solutions. It could also give Stripe, a payments processing firm, a stronger footing in the fast-growing artificial intelligence sector.
Stripe Inc. has reached an agreement to acquire OpenRouter Inc., an AI startup that assists businesses in selecting the most cost-effective artificial intelligence models, for over $7 billion, according to sources familiar with the transaction. The deal, which comes shortly after OpenRouter secured funding at an estimated $1.3 billion valuation, highlights the growing need for companies to optimize their AI expenses.
This acquisition will also bolster Stripe's position in the rapidly expanding artificial intelligence market.
The final acquisition price may vary. Discussions surrounding the deal were described by anonymous sources as confidential, as the information is not yet public. Stripe declined to comment on the reported rumors or speculation, while OpenRouter also chose not to respond.
Founded in 2023, OpenRouter offers access to hundreds of AI models, aiming to connect developers with the most efficient and affordable options for their specific needs. Based in New York, the company has attracted significant investment from prominent Silicon Valley firms such as Alphabet Inc.'s venture arm CapitalG, Andreessen Horowitz, and Menlo Ventures. OpenRouter has successfully raised more than $150 million in capital since its inception.
The rise of OpenRouter aligns with increased concerns about AI costs. While industry giants like Anthropic PBC and OpenAI continue to provide top-tier AI models, numerous Chinese companies offer more affordable alternatives that are often deemed sufficient for many applications. In May, OpenRouter reported serving 8 million developers who utilize its platform to access over 400 distinct AI models.
The company's primary growth stems from developers experimenting with various models while incorporating agentic capabilities into their software, requiring a blend of infrastructure compatible with different providers and data sources.
OpenRouter also provides services to help companies recover from model failures and identify the most popular options within the broader technology community. Earlier reports indicated that Stripe had been in talks to acquire OpenRouter for approximately $10 billion. OpenRouter's CEO, Alex Atallah, previously co-founded OpenSea, an NFT marketplace that raised over $400 million in capital but witnessed a decline in usage.
Atallah stepped down from OpenSea in July 2022 and subsequently launched OpenRouter. In recent months, Atallah has described OpenRouter as the AI counterpart to Stripe.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
