OpenAI to acquire product testing start-up Statsig for $1.1B
What's the story
OpenAI, the company behind ChatGPT, has announced its plan to acquire product testing start-up Statsig in an all-stock deal valued at around $1.1 billion. The move comes as part of OpenAI's strategy to expand its artificial intelligence (AI) offerings amid fierce competition from other players in the market. Statsig's CEO Vijaye Raji will be joining OpenAI as Chief Technology Officer of Applications after the acquisition is complete.
New role
Raji to lead product engineering for ChatGPT and Codex
In his new role, Raji will be responsible for leading product engineering for OpenAI's ChatGPT and its coding agent, Codex. His responsibilities will cover core systems and product lines including infrastructure. This comes just a few months after OpenAI acquired Jony Ive's start-up io Products in a $6.5 billion deal to develop AI hardware.
Financial growth
OpenAI's revenue growth and financial trajectory
OpenAI has seen its revenue double in the first seven months of this year, reaching an annualized run rate of $12 billion. The company is on track to hit $20 billion by the end of the year. This financial success comes largely from its flagship product ChatGPT and other AI products and services.
Operational continuity
Statsig's operational status post-acquisition
After the acquisition, Statsig employees will join OpenAI but continue to operate independently from their Seattle office. This is in line with OpenAI's approach of integrating new acquisitions while allowing them to maintain their unique operational identity. Statsig, which raised $100 million in funding earlier this year, builds tools for software developers to test and flag new features.