Stripe Eyes Bigger AI Push With $7 Bn-Plus OpenRouter Deal

Stripe Inc. has reached an agreement to acquire artificial intelligence startup OpenRouter Inc. in a transaction valued at more than $7 billion, as per a report by Bloomberg (BBG).

The deal would mark a major move by Stripe into the AI sector and comes only months after OpenRouter was reportedly valued at about $1.3 billion in a funding round.

The acquisition highlights growing demand among businesses for tools that can help them choose AI models based on cost, performance and specific use cases.

However, the final value of the transaction could still change, the report said.

A Stripe spokesperson said that the company does not comment on rumours or speculation, while OpenRouter declined to comment, it added.

The Wall Street Journal (WSJ) had earlier reported that Stripe was in talks to acquire OpenRouter in a deal worth around $10 billion.

What Is OpenRouter?

Founded in 2023, New York-based OpenRouter gives developers access to hundreds of AI models and helps them select options suited to particular tasks.

The company has raised more than $150 million so far, with investors including CapitalG, one of Alphabet Inc.'s venture arms, Andreessen Horowitz and Menlo Ventures.

OpenRouter is led by Alex Atallah, who previously co-founded nonfungible token marketplace OpenSea. OpenSea had raised more than $400 million before its usage declined sharply. Atallah stepped down from the company in July 2022 and launched OpenRouter less than a year later.

Earlier this year, Atallah described OpenRouter as the AI equivalent of Stripe.

Focus On AI Costs And Model Flexibility

OpenRouter's growth has come as companies pay closer attention to the cost of using AI. While models from companies such as Anthropic PBC and OpenAI are widely considered among the most capable, lower-cost alternatives, including those offered by several Chinese firms, are increasingly being used for tasks where top-end performance may not be necessary.

In May, OpenRouter said it served eight million developers and provided access to more than 400 AI models, as per BBG. Its platform has attracted developers experimenting with agentic AI applications that require systems capable of working with different model providers and data sources.

The company also provides backup options when an AI model becomes unavailable and offers data on the popularity of models across the wider technology ecosystem.