OpenAI is reportedly in advanced discussions with major private equity firms to form a joint venture aimed at accelerating enterprise adoption of AI, as competition intensifies with rival Anthropic.
According to Reuters, OpenAI is negotiating with firms including TPG, Advent International, Bain Capital, and Brookfield Asset Management to establish a new entity that would distribute its AI products across the firms' portfolio companies and beyond. The proposed venture carries a pre-money valuation of US$10 billion, with the investors expected to commit roughly US$4 billion in exchange for equity stakes and board representation.
The Information similarly reported that the deal would give participating private equity firms early access to OpenAI's technology while enabling them to deploy AI solutions across businesses they control, underscoring the growing strategic importance of private equity as a distribution channel for AI companies.
OpenAI is reportedly offering preferred equity in its proposed venture, giving investors downside protection and priority returns, while Anthropic is offering common equity, which carries greater risk but potentially higher upside.
The timing of these efforts highlights how AI is reshaping private equity investing. Rapid advances in automation have complicated traditional dealmaking by raising uncertainty around long-term business models and valuations, while also creating demand for AI tools that can improve efficiency across portfolio companies.
For OpenAI, the joint venture could also serve as a distribution engine for its recently launched enterprise platform, Frontier. Reuters previously reported that the initiative is tied to the company's "Frontier Alliances" program, which pairs its engineers with consulting firms such as BCG, McKinsey, Accenture, and Capgemini to embed AI into core business operations.
OpenAI's enterprise segment is already a major revenue driver, generating US$10 billion of its US$25 billion annualized revenue.
While the talks remain ongoing and subject to change, the potential partnerships signal a new phase in the AI race, one where access to enterprise customers may prove just as critical as technological leadership.
Article edited by Jack Wu
