Payment processing giant Stripe Inc. has finalized an agreement to acquire artificial intelligence startup OpenRouter Inc. for more than $7 billion, according to sources familiar with the matter.
The target company specializes in helping businesses seamlessly switch between different AI models. This deal comes just months after OpenRouter completed a funding round that valued it at approximately $1.3 billion, underscoring surging demand in the enterprise market for cost-effective AI solutions.
This acquisition will bolster the payment processing behemoth's competitive position in the rapidly expanding AI landscape. The final price could still fluctuate, as details have not been publicly disclosed, and sources requested anonymity to discuss the private transaction.
A Stripe spokesperson stated the company does not comment on market rumors or speculation, while OpenRouter declined to respond. Founded in 2023, OpenRouter offers access to hundreds of AI models, helping developers find the most efficient and economical option for specific tasks.
The New York-based startup has attracted top Silicon Valley investors, including Alphabet Inc.'s venture arm CapitalG, as well as Andreessen Horowitz and Menlo Ventures. To date, OpenRouter has raised over $150 million in total funding.
The company's rapid rise comes amid growing price sensitivity in the AI market. While models from Anthropic PBC and OpenAI are still considered the most advanced, lower-cost alternatives from numerous Chinese firms are now seen as sufficiently capable for many scenarios.
In May, OpenRouter disclosed it served 8 million developers who used its platform to access more than 400 different AI models. A key growth driver comes from developers experimenting with various models to build agentic capabilities in software development, a process requiring an infrastructure mix that works across multiple providers and data sources.
Additionally, OpenRouter offers fallback model switching in case the primary model fails and helps clients identify the most popular models across the entire tech ecosystem. Earlier reports suggested Stripe was interested in acquiring OpenRouter for about $10 billion.
OpenRouter CEO Alex Atallah previously co-founded NFT marketplace OpenSea, which raised over $400 million but saw user activity decline sharply. Atallah left OpenSea in July 2022 and founded OpenRouter less than a year later. Earlier this year, Atallah described OpenRouter as "the Stripe of the AI world."