OpenAI’s investment in Thrive Holdings is its latest circular deal

OpenAI takes an ownership stake in Izdihar Holdingwhose parent company is one of the major investors in artificial intelligence giant Thrive Capital.

Thrive Holdings operates as an AI private equity firm, bringing together companies that it believes can benefit from the technology in sectors such as accounting and IT services.

Neither company disclosed the terms of the deal, but it will include OpenAI integrating engineering, research and product teams within Thrive companies to accelerate AI adoption and enhance efficiency, the company says. If these companies succeed, OpenAI’s share will grow, and they will receive compensation for their services, according to the OpenAI website Reports from CNBC.

The partnership follows a pattern of Circular deal making For the $500 billion AI giant, which also recently acquired stakes in infrastructure partners like Advanced Micro Devices and CoreWeave. Analysts will be watching to see whether companies owned by Thrive actually succeed in building profitable businesses over the long term using OpenAI technology, or whether the result is merely inflated valuations based on speculative market potential.