Stripe didn’t really buy OpenRouter because of the ‘singularity’
What does a payments giant want with a startup that routes prompts between different AI models? Stripe says it's because of "the singularity" but it's really for a far more real and powerful reason.
On Wednesday, Stripe announced it had acquired OpenRouter for $7.5 billion. The startup's valuation had risen from $1.3 billion in May to $7.5 billion following the deal. The founders of OpenRouter will receive $1.5 billion, more than the company's entire valuation just three months prior. Stripe will pay the remaining $6 billion to investors.
According to a leaked letter from Stripe's founders, the company's acquisition of OpenRouter is driven by the concept of the "singularity." This term, though overused, marks the point at which humans and technology merge to create a new species. While the founders don't believe this is happening, they acknowledge the economic impact AI is having on Stripe.
With AI, more companies are launching and using Stripe's services, including OpenAI and Anthropic. Stripe has noted that 88% of the Forbes AI 50 use its products, and all of Brex's fastest-growing startups do as well. Although it's unclear how AI will transform the economy in the future, everyone agrees it will change it significantly.
The acquisition of OpenRouter, known for helping developers manage model usage, gives Stripe a better understanding of AI usage and expense management. The deal positions Stripe in the middle of capital flows in the AI era and provides Stripe with some control over suppliers like frontier labs, hyperscalers, and neoclouds.
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