OpenAI's Strategic Investor Demands: A Competitive Standoff

OpenAI, with substantial investments from Thrive Capital and Tiger Global, seeks more than just financial backing. They've requested investors to avoid supporting specific competing firms, like Anthropic and xAI. This strategic move is aimed at maintaining dominance in developing large language models and expanding enterprise-focused revenue streams.

OpenAI has secured a massive $6.6 billion investment from global players Thrive Capital and Tiger Global, but with strings attached. The artificial intelligence leader has requested its investors to refrain from financially backing five fintech firms it considers competitors, Reuters sources revealed.

Among the companies labeled as rivals are Anthropic, Elon Musk's xAI, and OpenAI's co-founder Ilya Sutskever's new venture, Safe Superintelligence (SSI). These firms are actively developing large language models and have attracted billions in funding.

OpenAI also mentioned two AI application startups—AI search startup Perplexity and enterprise search firm Glean—in their investor conversations. This indicates OpenAI's plans to expand its tools to both enterprises and direct consumers to bolster its revenue. Despite requests for comments, OpenAI, Perplexity, and SSI declined. Anthropic and Glean did not immediately respond, and xAI could not be reached.

(With inputs from agencies.)