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Stripe Inc. has finalized an agreement to acquire OpenRouter Inc., a startup that helps companies switch between artificial intelligence models, for more than $7 billion, according to people familiar with the matter.
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.
The final price for the acquisition could change. The discussions were described by people who spoke on condition of anonymity as the information is not public.
A spokesperson for Stripe said the firm doesn’t comment on rumors or speculation. OpenRouter declined to comment.
Founded in 2023, OpenRouter provides access to hundreds of AI models, with the goal of matching developers with the most efficient and affordable options for the job at hand. The New York-based company has attracted some of the biggest investors in Silicon Valley, including CapitalG — one of Alphabet Inc.’s venture arms — as well as Andreessen Horowitz and Menlo Ventures. OpenRouter has raised more than $150 million in capital to date.
The startup’s rise coincides with greater scrutiny on AI costs. While firms like Anthropic PBC and OpenAI are still widely viewed as offering the most capable AI models, a long list of Chinese firms provide cheaper alternatives that are often viewed as good enough for many tasks.
In May, OpenRouter said it serves 8 million developers who rely on it to access more than 400 different AI models. The startup’s main growth is coming from developers who experiment with different models when building agentic capabilities into their software, a process that requires a mix of infrastructure that can work across different providers and data sources.
OpenRouter also offers services that help companies access backups in case the model they use fails and understand which options are most popular across the broader tech ecosystem.
The Wall Street Journal previously reported Stripe was in talks to buy OpenRouter for about $10 billion.
OpenRouter Chief Executive Officer Alex Atallah previously co-founded OpenSea, a nonfungible token marketplace, which raised more than $400 million in capital but saw usage crater. Atallah stepped down from OpenSea in July 2022, and less than a year later started OpenRouter.
Earlier this year, Atallah described OpenRouter as the AI equivalent of Stripe.
This story was originally featured on Fortune.com
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