OpenAI offers PE firms 17.5% returns in AI venture: sources

OpenAI is offering private equity firms preferred equity in a planned joint venture with a minimum 17.5% return as it competes with Anthropic for enterprise AI customers, sources said.

The talks cover investors including TPG and Advent, and OpenAI is also offering early access to new AI models, the sources said.

The joint venture structure would help fund engineers and custom work needed to deploy AI in large companies and could reduce upfront costs as both firms position for possible IPOs, the sources said.

Sources said Anthropic pitched a similar enterprise-focused venture but without guaranteed returns.

Some buyout firms have stayed out over concerns about economics and flexibility, and Thoma Bravo chose not to join after internal discussions, a source said.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

OpenAI’s generous terms signal a race to gain ground in enterprise AI

In talks with private equity firms, OpenAI is offering “preferred equity,” a senior class of ownership that gives investors priority returns while limiting downside risk 1.
At Anthropic, sources said it pitched a similar enterprise-focused joint venture, though without guaranteed returns 1.
The sweeter package lands as many observers see Anthropic ahead of OpenAI in enterprise AI adoption 1.
OpenAI also offered more investor-friendly terms, including a minimum 17.5% return in the planned joint venture, to push enterprise uptake as both firms line up for possible IPOs 1.

AI giants are using private equity portfolios as distribution channels

OpenAI and Anthropic are courting private equity firms because they control portfolio companies, plus influence budgets for software and AI 1.
The plan centers on a joint venture that deploys the AI company’s tools across portfolio companies. It could also reach outside those portfolios, while helping pay for engineers and custom work for big rollouts 1.
This structure could lower upfront implementation costs and make revenue buckets easier to separate as the companies prepare for potential public listings 2.
For private equity firms, the setup could help portfolio companies handle AI-driven disruption, though some buyout firms have stayed out over worries about economics and flexibility 2.