OpenAI Expands with $1.1 Billion Statsig Acquisition to Boost Applications Division

OpenAI has reached an agreement to acquire Statsig, a product testing startup, in a significant $1.1 billion all-stock deal. This transaction stands as one of the largest in the history of OpenAI, the creator of ChatGPT. Statsig, which was founded in 2021, specializes in building tools to help software developers test and implement potential new features. The startup's services have been adopted by OpenAI, Eventbrite Inc., SoundCloud Ltd., and various other technology firms. Earlier this year, Statsig conducted a funding round and was valued at approximately $1.1 billion.

The acquisition of Statsig marks a strategic expansion for OpenAI, especially as it aims to strengthen its Applications business unit. This division is currently led by Fidji Simo, previously the CEO of Instacart, who joined the company recently. Statsig's founder and CEO, Vijaye Raji, is set to take on a new role as CTO of Applications at OpenAI. In his new position, Raji will report directly to Simo and oversee product engineering for ChatGPT, OpenAI's AI coding tool Codex, and future applications developed by OpenAI. The company's decision to integrate Statsig’s experimentation platform is expected to enhance product development capabilities within the Applications division.

Upon completion of the acquisition, Statsig will maintain its operational independence and continue to serve its customer base from its Seattle office. All Statsig employees will transition to become OpenAI employees, preserving the startup's existing operations and client relationships. As part of this transition, Raji's leadership will complement the existing product and design leaders at OpenAI. His new role will involve collaboration with Simo to further develop OpenAI's suite of applications.

In conjunction with this acquisition, OpenAI is undergoing a reorganization of its leadership team. Kevin Weil, previously OpenAI's Chief Product Officer, will assume the role of Vice President of a newly-formed group called OpenAI for Science. His mandate is to create an AI-powered platform envisioned as the next significant scientific instrument. Weil's role will involve close collaboration with Sebastien Bubeck, an OpenAI researcher and former VP of AI at Microsoft.

Meanwhile, Srinivas Narayanan, OpenAI’s current Head of Engineering, will transition to serve as the CTO of B2B applications. In this new capacity, Narayanan will work closely with OpenAI COO Brad Lightcap, who plays a pivotal role in managing the company's enterprise customer relationships.

The acquisition of Statsig is subject to regulatory review, and OpenAI expects the transaction to conclude smoothly. This development signals OpenAI’s commitment to enhancing its capabilities in product engineering and testing, reinforcing its position in the rapidly evolving artificial intelligence landscape.