ChatGPT Creator Offers Higher Returns to Win Business Battle Against AI Rival

OpenAI, the company behind ChatGPT, is promising private equity firms a guaranteed 17.5% return as it competes with rival Anthropic for partnerships. Both artificial intelligence companies are seeking joint ventures with investment firms to expand their business customer base and raise billions in funding.

The artificial intelligence company behind ChatGPT is making more attractive financial offers to private investment firms than its main competitor as both companies battle for lucrative business partnerships, according to sources with knowledge of the negotiations.

OpenAI is promising private equity companies a guaranteed minimum return of 17.5%, a rate substantially above what these types of investments typically offer, two informed sources revealed. The company is also providing early access to its latest AI technology as it works to secure partnerships with major firms like TPG and Advent for a new joint venture, three additional sources confirmed.

The company has recently intensified its focus on business clients, a market where competitor Anthropic has traditionally held an advantage. In contrast, Anthropic’s business-focused partnership proposal to private equity firms included no such guaranteed returns, the sources noted.

Both OpenAI and Anthropic are pursuing partnerships with investment firms that would enable rapid deployment of their AI technology across hundreds of established companies in these firms’ portfolios. This strategy would significantly increase usage of their AI systems and create stronger customer loyalty on a large scale.

The two companies are competing intensely for more profitable business clients as they position themselves for possible public stock offerings potentially as soon as this year.

The joint venture approach could help cover the substantial upfront expenses of deploying engineers to tailor AI systems for individual clients, reducing financial pressure on both OpenAI and Anthropic before going public while providing clearer financial reporting that could support their IPO stories, two people familiar with the discussions explained.

Both AI companies are rushing to secure similar partnerships with private equity firms, representing a new strategic approach in the artificial intelligence industry.

“There’s a big race to lock in as much enterprise, as many desks as possible,” explained Matt Kropp from Boston Consulting Group’s AI division, noting that once a company integrates a customized AI system into its operations, switching to a competitor becomes much more difficult.

“I can see that there’s a huge amount of scalability there,” he added.

OpenAI, TPG and Advent all declined to provide comments. Anthropic did not respond to requests for comment.

However, not all private equity firms are embracing these opportunities. At least two investment companies chose not to join either joint venture, expressing concerns about the financial terms, operational flexibility and profit potential of the partnerships, two sources said.

Thoma Bravo, among the world’s largest software-focused investment firms, decided against participation after internal discussions led by managing partner Orlando Bravo, according to someone familiar with the decision. Bravo questioned the long-term profitability of joint ventures with OpenAI and Anthropic, noting that many companies in their portfolio are already using AI tools, this person said.

Thoma Bravo declined to comment on the matter.

Some private equity investors have questioned these partnerships, pointing out that large investment firms already have direct relationships with OpenAI and Anthropic without needing to commit additional capital.

These investors suggested the partnerships also reflect pressure on investment firms from their own backers to show a clear artificial intelligence strategy. They observed that with technology company valuations currently depressed, such joint ventures might not significantly improve access to AI tools or create additional revenue. Any substantial benefits, they argued, would likely require securing board positions, ownership stakes or other favorable economic arrangements—opportunities only available to lead partners.

Additional private equity firms remain in discussions with OpenAI and Anthropic about joining the joint ventures, though many are expected to take smaller ownership positions without board representation or leadership roles, four sources indicated.

The investment package also includes priority status over other joint venture participants and protection against losses, sources revealed, with more private equity firms in talks to invest smaller amounts in the venture.

Reuters had previously reported that OpenAI is in advanced negotiations with firms including TPG, Bain Capital, Advent International and Brookfield Asset Management to raise approximately $4 billion at a pre-investment valuation of roughly $10 billion.

Anthropic, which has built strong relationships among business customers, is following a similar approach and has been courting private equity firms including Blackstone, Hellman & Friedman and Permira for its own business-focused venture, Reuters previously reported.