OpenAI has announced its agreement to acquire the product testing startup Statsig for $1.1 billion in an all-stock deal, one of the largest acquisitions ever for the ChatGPT maker. The move is part of OpenAI’s latest effort to build out its Applications business and is accompanied by a significant shuffle in its leadership team.
By the Numbers
The acquisition is a major move for OpenAI, reflecting its aggressive strategy to expand its product offerings:
- $1.1 Billion: The value of the all-stock deal to acquire Statsig.
- $300 Billion: OpenAI’s current valuation, which the deal is based on.
A Strategic Move to Accelerate Product Development
The acquisition is a key part of building out OpenAI’s Applications business, which is now helmed by the former CEO of Instacart, Fidji Simo. Statsig’s founder and CEO, Vijaye Raji, will join OpenAI as the new CTO of Applications, where he will head product engineering for ChatGPT, Codex, and future applications. Bringing Statsig’s experimentation platform in-house is expected to accelerate product development across the entire Applications organization.
Leadership Team Reshuffles to Focus on New Frontiers
As Raji comes on board, OpenAI is making several other changes to its leadership team:
- Chief Product Officer Kevin Weil will become the VP of a new group called OpenAI for Science, where he will work to build an AI-powered platform to accelerate scientific discovery.
- Head of Engineering Srinivas Narayanan will transition to a new role as the CTO of B2B applications, where he will collaborate directly with OpenAI’s COO, Brad Lightcap, to focus on enterprise customers.
Statsig to Continue Independent Operations
OpenAI has stated that once the acquisition is completed, all Statsig employees will become OpenAI employees. However, the product testing startup will “continue operating independently and serving its customer base out of its Seattle office”.
Source: TechCrunch
