Stripe in Talks to Buy AI Model Router OpenRouter for Over $7B

Stripe has reached an agreement to purchase OpenRouter, a startup that enables businesses to navigate different AI models, in a transaction worth more than $7 billion, according to Bloomberg sources familiar with the negotiations.

The arrangement arrives just months following OpenRouter's latest funding round, which placed the company's valuation at $1.3 billion. The final transaction price remains subject to adjustment, Bloomberg noted.

Launched in 2023 and headquartered in New York, OpenRouter grants access to hundreds of AI models through a single platform. The service is built to help developers select the optimal model for specific tasks based on efficiency and cost considerations.

The company has secured backing from prominent Silicon Valley investors, including CapitalG (one of Alphabet's venture divisions), Andreessen Horowitz, and Menlo Ventures. Total capital raised to date exceeds $150 million.

OpenRouter reported serving eight million developers across more than 400 AI models as of May. The company attributes much of its expansion to developers testing various models while integrating agentic capabilities into their applications.

This development work frequently demands infrastructure capable of functioning across multiple providers and data sources. OpenRouter's platform includes backup systems that activate when a primary model fails, alongside analytics showing which models are gaining momentum industry-wide.

The acquisition reflects growing interest from enterprises seeking tighter control over AI-related expenses. Companies are increasingly looking for infrastructure that allows them to compare and switch between different model providers without rebuilding their systems.

Earlier reporting from The Wall Street Journal had placed the potential purchase price near $10 billion, suggesting ongoing negotiations around final terms.

OpenRouter chief executive Alex Atallah previously co-founded OpenSea, a non-fungible token marketplace that raised over $400 million before experiencing a sharp decline in usage. Atallah departed OpenSea in July 2022 and established OpenRouter less than twelve months later.

Earlier this year, Atallah characterised OpenRouter as the AI sector's equivalent of Stripe — a comparison that takes on additional significance given the current transaction discussions.

A Stripe spokesperson told Bloomberg the company does not comment on rumours or speculation. OpenRouter similarly declined to provide comment on the reported acquisition.