OpenAI Raises Stakes: Investors Asked to Avoid Competitors

OpenAI, backed by $6.6 billion from Thrive Capital and Tiger Global, asks investors to not fund rival AI firms. Target companies include Anthropic and xAI. OpenAI aims for $11.6 billion revenue by 2025 while expanding its tool offerings to enterprises.

OpenAI is aiming to reshape the competitive landscape of AI development by securing a hefty $6.6 billion investment from global investors like Thrive Capital and Tiger Global. A bold move accompanies this financial backing: investors are urged not to invest in five specific companies seen as OpenAI's direct competitors, according to sources disclosed to Reuters.

The list reportedly includes firms developing large language models, like Anthropic and Elon Musk's xAI, as well as Safe Superintelligence, a new company by OpenAI co-founder Ilya Sutskever. The strategy aligns with OpenAI's ambitious revenue goal, aiming to boost its income to $11.6 billion by 2025.

This request, while not legally enforceable, exemplifies OpenAI's strategic push to ensure exclusive financial commitment from its investors in a fiercely competitive sector dependent on vast funding. This approach contrasts with common venture capital practices where diversity in investment portfolios is typical, particularly for late-stage investors.

(With inputs from agencies.)