Here’s what Sebastian Siemiatkowski, CEO of Klarna and founder, Flat Capital had to say when he first heard about OpenAI’s successful acquisition of io. This event has created quite a buzz across the whole tech industry. On stage with Sam Altman, Jony Ive announced the acquisition. Valued at $6.5 billion, it will be done as an all-stock deal. This news is a huge win for investors, including Sutter Hill Ventures who funded io.
In a post on X, Siemiatkowski praised Flat Capital’s involvement in io, revealing that his family investment office had purchased shares in the company six months prior to OpenAI’s announcement. As a result of this acquisition, Flat Capital will exchange its stock in io. In return, they would redeem them for equity in OpenAI’s for-profit subsidiary. Siemiatkowski cited the 100x financial return on their investment, which he said was a vote of confidence in the future of OpenAI.
“Excited that @FlatCapital was an investor in io and that we will now receive even more shares in OpenAI at a hefty return for an investment we did some 6 months ago.” – Sebastian Siemiatkowski
A closer look at the acquisition reveals one of the smartest moves Flat Capital made strategically. It further highlights a growing commitment to this strategy by other leading investors. Firms such as Emerson Collective, founded and directed by Laurene Powell Jobs, have been instrumental in io’s success. Participating were Thrive Capital, Maverick Ventures, SV Angel and the OpenAI Fund.
Luke Wroblewski, an additional investor in io, praised the team on their successful acquisition by OpenAI. He acknowledged the significant milestone with enthusiasm.
“congrats to io on the $6.5B acquisition by OpenAI today. happy to have been investors in this one.” – Luke Wroblewski
Specifics about how the acquisition will play out are just now coming into focus. In the meantime, Sutter Hill Ventures has not replied to requests for comments on their investment strategy or what they plan to do after this deal.
The acquisition of io is a big step for OpenAI. This will supercharge ChatGPT’s capabilities and even further cement its position in the ever-changing landscape of artificial intelligence. Inspirational investors are partnering with impactful companies to form transformative partnerships. This trend is all about building the right strategic partnerships to maximize the use of innovative technologies.