
THE new artificial intelligence enterprise services firm backed by Blackstone Inc., Anthropic PBC and Hellman & Friedman has picked a San Francisco firm called Fractional AI as the operational centerpiece of the as-yet unnamed venture.
With the tie-up, Fractional AI will end its 11-month partnership with OpenAI, according to people familiar with the terms of the deal.
It’s the first acquisition by the as-yet unnamed firm, created to encourage midsize companies to use generative AI, specifically Anthropic’s Claude, according to the people, who asked not to be identified discussing confidential information. Apollo Global Management Inc, General Atlantic, Leonard Green & Partners, GIC and Sequoia Capital are also investors in the new services firm.
For both Anthropic and OpenAI, forming joint ventures with the world’s largest alternative asset managers is a way to promote the use of their AI tools across thousands of portfolio companies. They also plan to provide their services and tools to other midsize companies not owned by private asset managers.
Fractional aims to “close the multitrillion-dollar gap between where businesses operate today and where they can be, leveraging Anthropic’s leading models, and starting with portfolio companies of the world’s best alternative asset managers,” Chris Taylor, chief executive officer, and Eddie Siegel, chief technology officer at Fractional AI, said in the joint statement with Anthropic, Blackstone and Hellman & Friedman Thursday.
Terms of the transaction were not disclosed.
The two-year-old company was founded by Taylor, Siegel and Travis May. The trio met several years ago while working at data collaboration network LiveRamp. Since then, May founded healthcare data logistics company Datavant, now a New Mountain Capital portfolio company, and Taylor and Siegel helped start a data integration platform that was acquired by Samba TV in 2019.
Fractional AI has been working with several large private equity firms, including Datasite, a software-as-a-service provider backed by CapVest Partners.
Blackstone, the world’s largest alternative asset manager with more than $1.3 trillion of assets, has been an eager investor in data centers, utilities and other elements of artificial intelligence infrastructure. Its funds have backed OpenAI, Anthropic and SpaceX, and most recently agreed to create an artificial intelligence cloud business with Alphabet Inc.’s Google to boost computing infrastructure. –BLOOMBERG
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