Stripe in Talks to Buy Buzzy AI-Model Marketplace OpenRouter
The startup based in New York was most recently valued at $1.3 billion, but could fetch around $10 billion in a sale
- Stripe is in talks to acquire OpenRouter, an AI startup that could fetch around $10 billion in a sale.
- OpenRouter, which was valued at $1.3 billion in May, sells software that helps developers access and compare different AI models.
- Stripe and private-equity firm Advent International recently made an unsolicited offer to buy PayPal for around $53 billion.
Stripe is in talks to acquire OpenRouter, a buzzy startup that helps developers choose between artificial-intelligence models, according to people familiar with the matter.
A transaction could be announced soon, though the talks could still fall apart or another suitor could emerge, the people said. The exact price being discussed couldn’t be learned, but some of the people said the business could fetch about $10 billion in a sale.
A number of other big tech companies had been considering potential deals for OpenRouter, the people familiar with the matter added.
OpenRouter is part of an emerging crop of startups that have found a lucrative niche between AI developers and the companies that want to use them. Founded in 2023, the company sells software that allows customers to easily access AI models built by OpenAI and Anthropic, as well as “open weight” alternatives that are free for anyone to download and run.
The company lists hundreds of large language models on its platform, allowing developers and businesses to easily access, compare and switch between them.
A deal for OpenRouter could allow Stripe to seize upon a hot area of growth in the AI market. Many tech companies are looking to use a wide range of different AI models as a way to control spending and diversify away from OpenAI and Anthropic.
Stripe is primarily a payments processor, helping companies across the internet accept payments, but it has recently tried to expand into new areas such as infrastructure for AI and stablecoin payments. Its valuation hit $159 billion earlier this year.
OpenRouter and Stripe also already have a partnership together, where OpenRouter uses Stripe to accept payments from its customers, among other things.
OpenRouter was most recently valued at $1.3 billion in May, according to PitchBook. Its backers include Menlo Ventures and CapitalG, the growth-venture fund of Google parent company Alphabet. The Information reported earlier that OpenRouter was fielding takeover interest.
Stripe has separately been pursuing a deal for PayPal alongside private-equity firm Advent International. The duo recently made an unsolicited offer that would value PayPal at roughly $53 billion.
For PayPal, however, that takeover price was seen as too low, according to people familiar with the matter. Stripe and Advent are still considering their next move with respect to PayPal, some of the people said.