OpenAI revealed a significant new acquisition, acquiring product testing company Statsig in an all-stock transaction worth around $1.1 billion. The deal is among several attempts OpenAI has made to build out its offerings of AI applications, particularly as competition in the space intensifies in leaps and bounds.
What is Statsig and Why does it Matter?
Statsig is a software technology company that offers software developers tools for testing and maintaining new product features. Its platform is famous for facilitating A/B testing, feature flagging, and real-time decisions. This allows companies to release improved software, sooner, with greater confidence. Statsig’s services have already been utilized by several prominent tech giants, including OpenAI.
Statsig has just raised $100 million in funding. It is extensively used for experimentation and optimizing software based on user feedback and real-time data.
Changes in Leadership at OpenAI
Through this acquisition, Vijaye Raji, founder and CEO of Statsig, will assume the new role of Chief Technology Officer (CTO) of Applications at OpenAI. He will be responsible for product engineering for ChatGPT, Codex, and other key products. Raji has significant technical background, having worked with Meta (Facebook) previously and holding decades of experience with large consumer technology.
He will report to Fidji Simo, who is overseeing OpenAI’s growing applications division and was previously the CEO of Instacart.
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How the Acquisition Works
Statsig will become a part of OpenAI, but it will continue to operate from Seattle. All Statsig employees are invited to join OpenAI, and the company promises to maintain stable services for existing customers while slowly integrating operations.
The $1.1 billion price matches Statsig’s latest company valuation after their most recent funding round. This shows confidence in their long-term potential and the belief that working with OpenAI will speed up innovation.
OpenAI’s Growth and Recent Investments
This deal follows OpenAI’s recent purchase of io Products—a startup started by famous Apple designer Jony Ive—in a massive $6.5 billion acquisition in May 2025 aimed at building new AI hardware. These moves show OpenAI’s strong plans: the company wants the smartest software and advanced hardware for AI development.
OpenAI’s main product, ChatGPT, is booming. The company’s revenue doubled in the first half of 2025, with a yearly revenue rate reaching $12 billion, and experts believe this could grow to $20 billion by the end of the year. OpenAI is also getting ready to offer company shares to employees, with a company valuation close to $500 billion.
What Does This Mean for the Industry?
These deals demonstrate that OpenAI is not only interested in making AI smarter, but also ensuring its products are reliable, safe, and beneficial to individuals and companies. By adding key talent and successful platforms such as Statsig, OpenAI seeks to continue innovating rapidly and establishing new standards for AI development, testing, and deployment.
Analysts believe that this action will empower OpenAI and its clients—developers and companies alike—to introduce new AI tools with greater assurance, quality, and better user experience.
Industry Impact and the Future
OpenAI’s recent investments and strong financial growth signal to the tech world that AI development is only speeding up. The company has also started using Google’s Tensor Processing Units (TPUs), diversifying its computing resources—a sign that it plans to scale up even more.
With Statsig, OpenAI will likely make its AI products—and any new ones—not just smarter, but more reliable and faster to reach the market.
Conclusion
OpenAI’s acquisition of Statsig for $1.1 billion and its appointment of Vijaye Raji as CTO of Applications is a big step in OpenAI’s mission to make AI both powerful and accessible. With rapid revenue growth, ongoing investments, and expansion in software and hardware, OpenAI is aiming to lead the AI race by building better products, driving innovation, and reaching more people than ever before.
