This will be one of the largest deals in the history of ChatGPT developer.
Founded in 2021, Statsig builds tools that help software developers test and flag potential new features. Its services have been used by employees at OpenAI, Eventbrite Inc., SoundCloud Ltd. and other technology firms, according to the company’s website. Earlier this year, Statsig raised $100 million in a funding round, at a valuation of $1.1 billion.
As part of the deal, Statsig founder and CEO Vijay Raji will join OpenAI as CTO of applications, the company said in a blog post on Tuesday. He will report to Fiji Simo, a former Instacart executive who recently took over the division. Simo said in a statement that Raji will help companies and developers use OpenAI’s technology to build “safe applications that empower people.”
OpenAI has been more active in large M&A deals this year, helped in large part by its soaring valuation. In March, the company announced the completion of a $40 billion deal at a total valuation of $300 billion, including raised funds. OpenAI is currently in talks to allow current and former employees to sell shares, based on a valuation of $500 billion, according to Bloomberg News. In July, OpenAI completed a $6.5 billion stock-based deal to acquire an AI device startup founded by former Apple chief designer Jony Ive. OpenAI also agreed to buy AI programming startup Windsurf for about $3 billion, but the deal fell through.
The Statsig acquisition deal is pending regulatory approval.
In addition to Raja’s arrival, OpenAI is making other changes to its leadership team. Kevin Weil, OpenAI’s chief product officer, will become vice president of the new AI for Science business, a company spokesperson said. Srinivas Narayanan, vice president of engineering, will become chief technical officer for B2B applications. Several product managers, including Nick Turley, Ashley Alexander and Ian Silber, will report to Simo.
Source: Bloomberg