OpenAI Acquires Statsig: A Major Move in AI Product Testing

OpenAI Acquires Statsig for $1.1 Billion

OpenAI revealed on Tuesday, through a blog post, its agreement to acquire Statsig, a company specializing in product testing. Alongside this acquisition, Vijaye Raji, the founder and CEO of Statsig, will assume the position of OpenAI’s CTO of Applications.

Deal Details and Valuation

The transaction, valued at $1.1 billion, will be executed entirely in stock. This represents a significant acquisition for OpenAI, particularly considering the company’s current valuation of $300 billion, as confirmed by OpenAI spokesperson Kayla Wood to TechCrunch.

Expanding the Applications Business

This acquisition signifies OpenAI’s continued investment in its Applications division. This division is led by Fidji Simo, formerly the CEO of Instacart, who recently joined the company.

Raji will report directly to Simo and will be responsible for leading product engineering efforts for ChatGPT, the Codex AI coding tool, and future applications planned by OpenAI. Integrating Statsig’s experimentation platform is expected to expedite product development within the Applications organization.

Leadership Restructuring at OpenAI

Concurrent with Raji’s arrival, OpenAI is implementing changes within its leadership structure.

Kevin Weil, the current chief product officer, will transition to a new role as VP of OpenAI for Science, as announced on LinkedIn. The primary objective of this new organization is to create an AI-driven platform designed to accelerate scientific discovery.

Weil's New Focus and Collaboration

Weil will collaborate closely with Sebastien Bubeck, an OpenAI researcher and former VP of AI and Distinguished Scientist at Microsoft. He expressed confidence in the existing product and design teams, further strengthened by Fidji Simo’s leadership.

Weil stated that OpenAI’s products remain a central focus and are now under capable direction.

Narayanan's Role Evolution

Srinivas Narayanan, OpenAI’s current head of engineering, announced via LinkedIn his transition to CTO of B2B applications. In this capacity, Narayanan will work directly with Brad Lightcap, OpenAI’s COO, who manages relationships with enterprise clients.

Statsig's Future Operations

The Statsig acquisition is subject to regulatory approval. Upon completion, all Statsig employees will join OpenAI. However, Statsig will maintain its operational independence and continue serving its existing customer base from its Seattle location, according to the company’s blog post.

Key Takeaways

• OpenAI is bolstering its Applications division with the acquisition of Statsig.
• Vijaye Raji will become OpenAI’s CTO of Applications.
• Significant leadership changes are occurring within OpenAI to focus on science and B2B applications.
• Statsig will continue to operate independently post-acquisition.