ChatGPT developer OpenAI is offering private equity firms (PE) better terms than rival Anthropic, according to people familiar with the matter. The two artificial intelligence (AI) companies are currently vying to attract private equity firms and form joint ventures to raise new funds and accelerate the promotion of enterprise-level AI products.

Two sources said that OpenAI provided preferred stock investments to private equity companies and promised a minimum return of 17.5%, which is significantly higher than common preferred investment vehicles. Three sources said OpenAI is also providing potential partners with priority use of its latest AI models to attract investors such as TPG and Advent to join its joint venture.

OpenAI has recently significantly increased its investment in the enterprise market, and this area has always been Anthropic's strength. In contrast, Anthropic's previous private equity partnerships for corporate clients did not offer such returns, the sources added.

OpenAI and Anthropic are racing to form partnerships with private equity firms that will allow them to quickly roll out AI tools to hundreds of mature private companies owned by private equity firms, thereby promoting large-scale application of their models and increasing customer stickiness.

The two companies are vying for more lucrative enterprise customers to use AI in preparation for a potential initial public offering (IPO) that could take place as early as this year.

Two people familiar with the matter said that the joint venture structure can share the high upfront costs of sending engineers to customize models for customers, thereby easing the cost pressure of OpenAI and Anthropic before going public, and providing clearer business segment reporting to support their IPO-related statements.

OpenAI and Anthropic are rushing to form such partnerships with private equity firms, a new strategy in the AI ​​industry.

“There is a fierce competition to lock in as many enterprise customers and business units as possible,” said Matt Kropp of the Boston Consulting Group’s (BCG) artificial intelligence unit. He added that once a company integrates customized AI models into its systems, it will be difficult to switch to competitors.

OpenAI, TPG and Advent declined to comment. Anthropic did not respond to a request for comment.