OpenAI sweetens private equity pitch amid enterprise turf war with Anthropic, sources say

ChatGPT maker OpenAI is offering private-equity firms a sweeter deal than rival Anthropic as both artificial intelligence companies court buyout firms ‌to form joint ventures

ChatGPT maker OpenAI is offering private-equity firms a sweeter deal than rival Anthropic as both artificial intelligence companies court buyout firms ‌to form joint ventures aimed at raising fresh capital and accelerating adoption of enterprise AI products, according to people ​familiar with the talks.

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OpenAI is offering private-equity firms preferred equity stakes with a guaranteed minimum return of 17.5%, ⁠significantly higher than typical preferred instruments, two people familiar with the matter said. It is also offering early access to its newest AI models as it seeks to enlist investors such as TPG and Advent for its joint venture, three sources said.

The company has recently doubled down on enterprise, an ‌area where Anthropic has historically been stronger. By comparison, Anthropic’s enterprise-focused private-equity deal offered no such returns, the sources added.

OpenAI and Anthropic are competing for partnerships with buyout firms that would allow them to quickly roll out their AI tools ‌to potentially hundreds of private, established companies owned by buyout firms. This would boost the adoption of their models and encourage ‌customer ⁠stickiness at scale.

The two companies are battling for more lucrative business customers to use AI as they race ⁠to position themselves for potential public listings as early as this year.