OpenAI Acquires Statsig for $1.1 Billion, Bringing in a New Technical Leader

In a significant move that underscores the growing importance of data-driven experimentation in AI development, OpenAI has announced its acquisition of Statsig, a Seattle-area product testing startup, for $1.1 billion in an all-stock deal. The acquisition, announced Tuesday morning, appears to be as much about bringing Statsig’s founder and CEO Vijaye Raji into OpenAI’s leadership team as it is about incorporating the startup’s technology. Raji, a former Facebook engineering leader, will step into the newly created role of CTO of Applications for OpenAI, reporting to Fidji Simo, who was appointed CEO of OpenAI’s applications team earlier this year. This strategic hire highlights OpenAI’s commitment to strengthening its technical leadership as it continues to expand its applications portfolio beyond its flagship ChatGPT.

Statsig has established itself as one of the most trusted experimentation platforms in the tech industry, providing crucial tools for A/B testing, feature flagging, and real-time decision-making for numerous innovative companies—including OpenAI itself. Founded in 2021 and based in Bellevue, Washington, the company has grown rapidly to employ 155 people, with plans to expand to nearly 200 by early 2026. What makes Statsig particularly unique in today’s hybrid work environment is its commitment to a five-day-a-week in-office policy, a culture that Raji has credited for fostering speed and collaboration among the team. This dedication to in-person work has apparently paid dividends, as Statsig has climbed to the #5 position on GeekWire’s index of the region’s top startups and moved into new headquarters earlier this year.

The $1.1 billion acquisition price matches Statsig’s valuation from its latest funding round in May, suggesting that the startup’s investors are betting heavily on the long-term growth potential of OpenAI’s stock rather than seeking an immediate premium. Prior to the acquisition, Statsig had raised more than $153 million in funding, including a $43 million Series B round in 2022 led by Sequoia with participation from Madrona Venture Group. According to S. “Soma” Somasegar, a managing director at Madrona and early investor in Statsig, the acquisition represents a natural fit between the two companies. He highlighted Statsig’s “world-class product velocity,” customer obsession, and collaborative in-office culture as the foundation of its success, noting that Madrona’s early investment was primarily motivated by their confidence in Raji’s leadership abilities.

Once regulatory approval is secured and the acquisition is complete, OpenAI has indicated that Statsig will continue to operate independently from its Seattle-area office, serving its existing customer base. All of Statsig’s employees are expected to have the option to transition to OpenAI, maintaining the team’s integrity while gaining access to OpenAI’s substantial resources. This approach suggests that OpenAI recognizes the value in Statsig’s established operational model and company culture. The deal represents one of OpenAI’s largest acquisitions to date and follows closely on the heels of its massive $40 billion fundraise earlier this year, which valued the company at an impressive $300 billion. This acquisition is likely to strengthen OpenAI’s experimental capabilities as it works to refine and expand its AI offerings.

The acquisition also highlights the growing importance of the Seattle region as a tech hub, with Somasegar noting that the deal serves as “validation that Seattle is a hotbed of innovation and talent.” This geographic significance is further emphasized by OpenAI’s own expansion in the area, having opened an office in Bellevue in October and reportedly planning to move into City Center Plaza, a space previously occupied by Microsoft. According to LinkedIn data, OpenAI already has approximately 159 employees in the Seattle region, a number that will grow substantially with the addition of Statsig’s team. This regional investment suggests that OpenAI sees the Seattle area as a crucial talent pool as it continues to scale its operations.

For Statsig’s investors, the acquisition offers an opportunity to participate in OpenAI’s meteoric rise. As Somasegar explained in an interview with GeekWire, “We are shareholders of OpenAI, and we get to benefit in the rocketship now.” While he acknowledged that Statsig was growing well and could have potentially created more value as a standalone company, he expressed enthusiasm about the acquisition’s outcome. This sentiment reflects the broader excitement around OpenAI’s trajectory and the potential for Statsig’s technology and team to make an even greater impact as part of one of the world’s leading AI organizations. As the AI industry continues to evolve rapidly, this acquisition positions both companies to accelerate their shared mission of developing and deploying responsible, innovative AI applications at scale.