The new venture, which remains unnamed, is backed by investors including Blackstone, Hellman & Friedman, Apollo Global Management, General Atlantic, GIC and Sequoia Capital. The firm is designed to help midsize companies adopt generative AI tools, specifically Anthropic’s Claude models. Partners are expected to commit $1.5 billion to the venture, The Wall Street Journal reported earlier this month, citing sources familiar with the matter.
As part of the deal, Fractional AI will end its 11-month partnership with OpenAI, Bloomberg reported, citing people familiar with the deal. Financial terms of the acquisition were not disclosed.
The acquisition reflects a broader shift in the AI market as model developers seek more direct control over enterprise deployment. According to Bloomberg, both Anthropic and OpenAI have formed joint ventures with major alternative asset managers to drive adoption of their AI tools across portfolio companies and other midsize businesses.
Fractional AI was founded two years ago by Chris Taylor, Eddie Siegel and Travis May, who previously worked together at LiveRamp. Bloomberg reported that Taylor and Siegel later helped launch a data integration platform acquired by Samba TV in 2019, while May went on to found healthcare data logistics company Datavant. The company has already worked with several private equity-backed businesses, including software provider Datasite, backed by CapVest Partners.
The acquisition comes as Anthropic is on track to post its first operating profit in the second quarter of 2026. PYMNTS reported that the company projects $10.9 billion in revenue for the June quarter, up 130% from $4.8 billion in the first quarter, with operating income of $559 million for the period.
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Demand for its coding tools has been the primary growth driver. In the first quarter, Anthropic spent 71 cents on compute for every dollar of revenue. That ratio is expected to fall to 56 cents in the current quarter. Anthropic cautioned it may not sustain profitability for the full year given planned infrastructure spending increases.
