Stripe buys AI startup OpenRouter for over $7 billion

Payment processing firm Stripe Inc. has finalised an agreement to acquire OpenRouter Inc., a startup that helps companies switch between AI models, for more than $7 billion, Bloomberg reported citing people familiar with the matter. The deal comes months after OpenRouter raised money at a $1.3 billion valuation.

OpenRouter, founded in 2023 and based in New York, provides access to hundreds of AI models. It helps developers find the most cost-efficient options and offers backup services if a model fails. CEO Alex Atallah co-founded the NFT marketplace OpenSea. OpenRouter has raised over $150 million from investors including Alphabet's CapitalG, Andreessen Horowitz, and Menlo Ventures.

The final price could still change. Stripe declined to comment, and OpenRouter did not respond. Bloomberg notes the Wall Street Journal had earlier reported a deal value of about $10 billion.