Stripe Buys AI Startup OpenRouter for More Than $7 Billion

Stripe Inc., the major payments company, has finalized an agreement to acquire OpenRouter Inc., a startup that helps switch between artificial intelligence models, for more than $7 billion, according to people familiar with the matter. The final price could still change, as the deal has not yet been officially announced to the public.

The deal comes just months after OpenRouter raised funding at a $1.3 billion valuation, underscoring just how strong demand has become among companies seeking the cheapest and most efficient AI solutions. The acquisition will also give Stripe a firmer foothold in the fast-growing artificial intelligence industry.

Founded in 2023, OpenRouter connects developers with the most efficient and affordable options among more than 400 different AI models. The New York-based company has attracted major Silicon Valley investors, including Alphabet Inc.'s venture arm CapitalG, as well as Andreessen Horowitz and Menlo Ventures, and has raised more than $150 million to date. The company has said it serves 8 million developers, giving them access to more than 400 AI models.

OpenRouter's rise comes amid growing scrutiny of AI spending: while companies like Anthropic and OpenAI are still regarded as the makers of the most capable models, many Chinese firms are offering far cheaper alternatives considered "good enough" for many tasks. The Wall Street Journal had previously reported that Stripe was in talks to acquire OpenRouter for roughly $10 billion.

OpenRouter's CEO, Alex Atallah, previously co-founded the NFT (non-fungible token — a unique digital token certifying ownership of a unique digital asset) marketplace OpenSea, which raised more than $400 million but later saw a sharp decline in users. Atallah left OpenSea in July 2022 and founded OpenRouter in less than a year. Earlier this year, he described OpenRouter as "the Stripe of AI."