By Jasper Vance CSN News April 12, 2026
OpenAI announced its $1.2 billion USD acquisition of Cirrus Labs on April 12, 2026. The deal adds low-code platforms for AI software development and 150 engineers. Both companies issued a joint statement confirming the terms.
Cirrus Labs develops low-code platforms for AI applications. OpenAI plans to integrate these into its offerings.
Sam Altman, OpenAI CEO, said the acquisition advances enterprise AI. "Cirrus technology shortens development cycles by 40%, according to internal benchmarks," Altman said in the joint release.
OpenAI Acquisition Financials
Bloomberg reported OpenAI paid $800 million USD in cash and $400 million USD in equity. The transaction closes by June 30, 2026, subject to regulatory approval.
PitchBook data shows Cirrus Labs raised $250 million USD in venture funding since 2023. Sequoia Capital and Andreessen Horowitz investors receive 5x returns, per PitchBook.
PitchBook records list Cirrus Labs' pre-money valuation at $1.0 billion USD. The deal represents OpenAI's largest acquisition to date.
Microsoft, OpenAI's primary backer, supports the transaction. A Microsoft spokesperson said Azure incorporates Cirrus tools for cloud-based AI workflows.
Cirrus Labs Technologies
Cirrus Labs launched Cirrus Flow in 2024. The platform lets non-coders deploy AI models. Cirrus customer surveys report 60% faster prototyping times.
Features include drag-and-drop neural network builders. Cirrus Flow supports OpenAI GPT models and Anthropic alternatives. Company data states over 5,000 enterprises use it.
USPTO filings confirm Cirrus Labs holds 12 patents in AI orchestration. OpenAI gains access to broaden its API services.
Cirrus Flow handled 1.2 million AI deployments in 2025, per the company's annual report. Clients span finance and healthcare.
Strategic Impact
Google Cloud and Amazon Web Services offer competing AI kits. Cirrus low-code tools strengthen OpenAI's enterprise offerings.
OpenAI's Q1 2026 filings show enterprise subscriptions at 35% of revenue. Cirrus Labs serves Fortune 500 clients in regulated industries.
OpenAI will apply Cirrus tools to GPT-5 pilot programs. Integration begins post-close.
The deal follows OpenAI's 2026 purchases: Jony Ive's design firm for $1 billion USD in January, per Reuters, and NeuroLink AI chips for $500 million USD in March, per TechCrunch.
Market Reactions
Microsoft shares rose 1.8% to $450.23 USD in pre-market trading on April 12, 2026, per Nasdaq data. Traders cite Azure AI gains.
Nvidia shares climbed 2.1% to $145.67 USD. Analysts link the move to increased GPU demand from Cirrus workflows.
OpenAI reached $200 billion USD valuation after SoftBank's $20 billion USD investment in February 2026, per company filings.
Bitcoin traded at $72,500 USD, up 0.5% that day, per CoinMarketCap. AI momentum supported crypto prices.
Regulatory Review
EU regulators examine the deal under Digital Markets Act rules. Law firm Covington & Burling assesses 85% approval odds.
Google unveiled AI Studio updates post-announcement. Amazon Web Services pledged $4 billion USD to AI startups this year.
The U.S. Federal Trade Commission monitors the transaction. No objections filed as of April 12, 2026.
Expert Views
Yann LeCun, Meta AI chief scientist, posted on X: "Low-code AI tools democratize access."
Gartner analyst Rajesh Kandaswamy called the deal positive. "OpenAI closes the enterprise gap," he wrote. Kandaswamy forecasts 15% OpenAI market share growth by 2027.
Wedbush Securities analyst Dan Ives said: "This bolsters OpenAI's moat in enterprise AI, targeting $10 billion USD annual recurring revenue by 2028."
OpenAI Acquisition Outlook
OpenAI plans to rebrand Cirrus Flow as OpenAI DevKit in Q3 2026. Beta testing opens to 1,000 developers in May 2026.
IDC projects $250 billion USD in global AI spending for 2026. The OpenAI acquisition aligns with infrastructure consolidation.
