Payments giant Stripe has confirmed the acquisition of artificial intelligence startup OpenRouter in a deal reportedly worth $7.5 billion, days after reports emerged that the two companies had reached an agreement.
Stripe confirmed the acquisition on Wednesday but did not disclose the value of the transaction, while The New York Times, citing sources familiar with the deal, reported that Stripe paid $7.5 billion for the startup.
The development is an update to an earlier report by TechRegard that Stripe had agreed to acquire OpenRouter in a deal valued at more than $7 billion.
Stripe had previously declined to comment on the acquisition, with a company spokesperson telling TechCrunch that the company does not comment on rumours or speculation.
OpenRouter provides developers and businesses with a single gateway to hundreds of AI models, allowing users to access different providers without building separate connections to each model.
Its platform also helps users choose models based on factors such as performance, availability and cost, making it a major access point for developers working with multiple AI providers.
The latest deal has also revealed how Stripe’s founders view the rapidly growing AI economy, with Patrick and John Collison jokingly referring to the “singularity” when explaining the company’s approach to the technology.
“It’s a fuzzy and perhaps already overworked term, but we decided that January 1 marked the beginning of the singularity and we’ve been operating on that basis,” the founders wrote in a letter to investors.
The singularity is generally used to describe a hypothetical point when artificial intelligence and other technologies advance beyond human control or fundamentally transform humanity, although the Collison brothers’ reference was made in a tongue-in-cheek manner.
The founders also pointed to the growing economic impact of AI and the overlap between OpenRouter’s customers and Stripe’s developer base.
“OpenRouter is exceptionally useful for any developer and Stripe is one of the world’s largest developer platforms,” they wrote
Stripe has said that 88% of companies on the Forbes AI 50 list use its products, including OpenAI and Anthropic.
The acquisition could give Stripe a stronger position in the AI infrastructure market and expand its role beyond payments into helping businesses access, manage and pay for AI services.
OpenRouter raised $113 million in May at a valuation of about $1.3 billion, with investors including Sequoia, Andreessen Horowitz, Menlo Ventures and CapitalG.
The reported $7.5 billion acquisition therefore represents a major increase in OpenRouter’s valuation within just three months.
See also: AI Chip Startup Etched Raises $700m, Valuation Hits $21bn
According to The New York Times, OpenRouter’s founders are expected to receive about $1.5 billion from the sale, while investors could receive roughly $6 billion.
Stripe reportedly outbid other interested companies, including Databricks, to acquire the rapidly growing AI startup.
OpenRouter is expected to continue operating independently after the deal closes in the coming weeks, with the startup saying its product, mission and current commitments will remain unchanged.
The acquisition gives Stripe a major foothold in the infrastructure connecting developers and businesses to AI models and could give the payments company greater insight into the growing demand and spending surrounding artificial intelligence.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
