The acquisition highlights a growing market focus on the cost efficiency of AI tools.

Stripe has completed a deal to acquire OpenRouter, a startup that provides developers with a multi-model AI switching and routing service, for more than $7 billion. The purchase price is significantly higher than the $1.3 billion valuation OpenRouter commanded just a few months ago, reflecting intense market demand for its technology against a backdrop of rising scrutiny over AI spending costs.

OpenRouter's investor roster is notable, including Andreessen Horowitz (a16z), Menlo Ventures, and a venture capital arm under Alphabet. The company, founded in 2023, reached an annualised revenue of $50 million as of April this year, a fivefold increase compared to October last year. The Information previously reported that Stripe's acquisition of OpenRouter was likely structured as a cash-and-stock deal, valuing the startup at nearly $10 billion.

Developers use OpenRouter to purchase compute credits and access a variety of AI models on the platform, with OpenRouter charging a small service fee. Many companies are now moving away from relying solely on the newest, largest, and most expensive single model, instead opting for a hybrid approach that integrates multiple different AI models.