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OpenAI plans to commit $1.5 billion to a new joint venture with several private equity firms, according to a Financial Times report.
The company behind ChatGPT will first invest $500 million in the venture, known internally as DeployCo, with the new business expected to reach a $10 billion valuation in a funding round due to close in early May.
DeployCo has been set up as a Delaware-listed limited liability company. Its main role will be to speed up the use of OpenAI’s workplace products as the company launches harder into the business market.
Financial Times reported that OpenAI will hold super-voting shares in the venture, giving it stronger control over key decisions.
The report also noted that OpenAI has the option to invest another $1 billion later. At the same time, investors including TPG, Bain Capital, Advent International, Brookfield and Goanna Capital are expected to provide a further $4 billion.
Private equity backers are said to be investing for five years, with OpenAI guaranteeing them an annual return of 17.5%.
If completed, the deal would rank among the biggest partnerships between an artificial intelligence company and private equity investors.
OpenAI has recently increased its focus on corporate customers. It is looking to grow products such as ChatGPT Enterprise and other workplace tools beyond its consumer business.
That effort comes as competition increases in the business market. Anthropic, maker of Claude, is widely seen as having gained stronger traction with corporate clients. The company has also benefited from partnerships with Amazon and Google Cloud.
Microsoft is another major competitor through its deep ties with OpenAI and the integration of OpenAI models into Microsoft 365 and Azure. Google is also expanding its Gemini products for enterprise users.
Private equity firms are valuable partners because many of them own or influence large companies and can impact software spending decisions across their portfolios.
Reuters said it could not immediately verify the Financial Times report. OpenAI, TPG, Bain Capital, Advent International, Brookfield and Goanna Capital did not immediately respond to requests for comment.
The proposed joint venture could help OpenAI open a new revenue stream outside ChatGPT subscriptions, while expanding artificial intelligence tools across sectors such as finance, healthcare and manufacturing.
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