OpenAI announced the OpenAI Cirrus Labs acquisition valued at $2.8 billion USD on April 12, 2026. The deal includes $1.9 billion USD cash and $900 million USD OpenAI stock. Reuters reported the terms that day.
The OpenAI Cirrus Labs acquisition adds Cirrus Labs' AI code generation tools to OpenAI's enterprise offerings. Cirrus Labs develops AI-driven code generation software. CEO Sam Altman said it expands developer tools.
Background on Cirrus Labs
Cirrus Labs launched in San Francisco in 2022. The startup raised $450 million USD in three 2025 venture rounds, per Crunchbase. Sequoia Capital led Series C with $250 million USD at $3.2 billion USD valuation.
Andreessen Horowitz and Index Ventures participated in prior rounds. Cirrus Labs hit $180 million USD annual recurring revenue by late 2025, PitchBook data shows. Founder Elena Vasquez built it from Y Combinator.
Vasquez holds a Stanford computer science PhD. She led AI teams at Google DeepMind previously.
OpenAI Cirrus Labs Acquisition Financials
The $2.8 billion USD price equals 15.5x 2025 revenue multiple, per PitchBook analysts on April 13, 2026. OpenAI funded it from $6.6 billion USD October 2025 equity raise, filings confirm.
Goldman Sachs advised OpenAI. Morgan Stanley advised Cirrus Labs. Earn-outs tie to post-close performance.
Closing targets June 30, 2026, pending approvals. Early reviews show no major issues, Reuters reported.
Cirrus Labs Technology Overview
AutoCode generates production-ready code from natural language prompts. Cirrus Labs benchmarks published April 12, 2026, show 40% shorter development cycles.
AutoCode handles 15 languages, including Python, JavaScript, Rust. GitHub and VS Code integrations serve 50,000 beta users since January 2026, Cirrus Labs reported.
Cirrus Cloud enables collaborative debugging. It processes 1.2 million lines of code daily in production. Cirrus Labs secured 120 neural architecture search patents, U.S. Patent Office records show.
Vasquez joins OpenAI as software AI VP to lead integration.
Strategic Fit for OpenAI
OpenAI recorded $3.5 billion USD 2025 revenue, filings show. Its API powers codebases for 20% of Fortune 500 firms, including JPMorgan Chase, PwC.
Sam Altman wrote April 12: "Cirrus Labs' innovations accelerate our mission to equip developers with autonomous tools."
Gartner analyst Maria Chen stated April 13, 2026: "This positions OpenAI against GitHub Copilot and Amazon CodeWhisperer." Her report projects 25% dev tools market share gain.
OpenAI invested $500 million USD in Anthropic in 2024.
Market Reaction and Broader Trends
Nvidia shares rose 2.5% to $145.20 USD in U.S. trading April 12, 2026, Nasdaq data shows. Nasdaq Composite gained 1.1% to 18,450.
AMD shares rose 3.2%, Yahoo Finance reported.
AI startup funding fell 20% to $25 billion USD in Q1 2026, CB Insights said April 10. The deal provides Cirrus investors an exit.
Similar deals: Microsoft $10 billion USD OpenAI stake, Google $2.1 billion USD DeepMind. AI code tools M&A hit $15 billion USD in 2025, DealLogic data.
Regulatory Scrutiny
U.S. FTC began antitrust review April 13, 2026, on generative AI concentration.
EU checks AI Act compliance. Legal sources see no quick blocks.
OpenAI upholds data privacy. Cirrus customer contracts transfer.
Future Integration Plans
OpenAI integrates AutoCode with GPT-5 in Q3 2026. Vasquez leads 200 engineers.
Pilots launch July 2026 for select clients. OpenAI forecasts $800 million USD annual synergies by 2027.
The OpenAI Cirrus Labs acquisition points to AI developer tools consolidation.
