The venture, called The Deployment Company, brings together 19 investors, including TPG Inc., Brookfield Asset Management, Advent International and Bain Capital. SoftBank Group and Dragoneer Investment Group are also involved.

People with direct knowledge say the new company is valued at about $10 billion, not counting the new capital raised, while OpenAI will keep control of the business.

OpenAI wants its tools used inside more companies, not just tested. So it will place its engineers, who will help redesign workflows, automate routine tasks and ensure wider use of its software, directly within organisations backed by these investors.

This approach changes direction from simply selling access to software to focusing on hands-on deployment. It is closer to a service model, where companies pay not just for tools, but for implementation and ongoing support.

The investors backing the venture control more than 1,000 companies between them. That gives OpenAI a ready pipeline of clients without relying on long sales cycles. It also means faster rollout across sectors.

OpenAI has committed about $500 million upfront, with the option to increase that to $1 billion later. The rest of the funding will come from private equity firms over the next few years.

Interestingly, OpenAI is offering investors a 17.5% annual return, and if the venture doesn’t meet expectations, it will cover the gap, creating risk. On a $4 billion commitment, the shortfall could run into hundreds of millions each year if returns disappoint.

The development comes after Anthropic secured about $1.5 billion for a similar initiative. Its backers include Blackstone Inc., Goldman Sachs and Hellman & Friedman, who plan to deploy AI tools across their own investment portfolios.

Both companies are trying to prove that their technology can deliver value inside large organisations even as they move closer to potential public listings.

OpenAI is on track for about $30 billion in annual revenue this year, and at the same time, heavy spending on infrastructure could push losses as high as $14 billion.

The company behind ChatGPT will first invest $500 million in the venture, known internally as DeployCo, with the new business expected to reach a $10 billion valuation in a funding round due to close in early May.

DeployCo has been set up as a Delaware-listed limited liability company. Its main role will be to speed up the use of OpenAI’s workplace products as the company launches harder into the business market.

Financial Times reported that OpenAI will hold super-voting shares in the venture, giving it stronger control over key decisions.

The report also noted that OpenAI has the option to invest another $1 billion later. At the same time, investors including TPG, Bain Capital, Advent International, Brookfield and Goanna Capital are expected to provide a further $4 billion.

Private equity backers are said to be investing for five years, with OpenAI guaranteeing them an annual return of 17.5%.

If completed, the deal would rank among the biggest partnerships between an artificial intelligence company and private equity investors.

OpenAI has recently increased its focus on corporate customers. It is looking to grow products such as ChatGPT Enterprise and other workplace tools beyond its consumer business.

That effort comes as competition increases in the business market. Anthropic, maker of Claude, is widely seen as having gained stronger traction with corporate clients. The company has also benefited from partnerships with Amazon and Google Cloud.

Microsoft is another major competitor through its deep ties with OpenAI and the integration of OpenAI models into Microsoft 365 and Azure. Google is also expanding its Gemini products for enterprise users.

Private equity firms are valuable partners because many of them own or influence large companies and can impact software spending decisions across their portfolios.

Reuters said it could not immediately verify the Financial Times report. OpenAI, TPG, Bain Capital, Advent International, Brookfield and Goanna Capital did not immediately respond to requests for comment.

The proposed joint venture could help OpenAI open a new revenue stream outside ChatGPT subscriptions, while expanding artificial intelligence tools across sectors such as finance, healthcare and manufacturing.

Rali_Cap is a two-year old VC investing in B2B and API-first fintechs at pre-seed and seed stages across target markets. By the end of June, the firm seeks to reach the second close of the fund.

Before putting forward a new fund size, signaling a strong LP appetite, the VC reached its first close of $20 million initial target last month.

The limited partners for this new $30 million fund were Breyer Capital, Propel VC, Better Tomorrow Ventures, FT Partners, Bain Capital, Lateral Capital, a few family offices, HNIs and a multibillion-dollar crossover fund also known for investing in smaller funds.

The VC firm has backed 12 African startups, 13 Latin American startups and 7 Asian startups, from across the banking-as-a-service and card issuance, open finance sectors and SME digitization platforms, such as Belvo, Mono, Minka, Stitch, Union54, Pomelo, Simetrik, Brick and Abhi. Some of Rali_cap’s LPs include executives and managers from fintechs such as Wave, Block, MercadoPago, Rappi, Flutterwave, Yoco, Visa, Plaid, Stripe and Coinbase, as well as e-commerce platforms like Jumia and Shopify. Among these LPs, some have taken part in follow-on early- and growth-stage rounds of the startups.

For this new fund, though open for exceptions, Rali_cap targets startups in large markets such as Africa — Nigeria, Egypt and South Africa; Latin America — Brazil and Mexico; and South Asia — Pakistan and Bangladesh. 

The VC invests between $200,000 and $500,000 in these startups. The firm leads pre-seed deals and takes part in seed rounds.