OpenAI demands investors shun rivals such as Anthropic, Elon Musk’s xAI – Computerworld

“These arrangements have traditionally been more common in fast-moving, high-stakes industries like ridesharing, where firms like Uber and Lyft sought to secure conflict-free funding during critical growth periods,” George said. However, such agreements were typically limited to defined periods, such as six or 12 months, he added.

The move could significantly reshape the venture capital landscape, potentially intensifying competition for funding among emerging AI startups and concentrating most venture capital investments around fewer, larger companies.

“OpenAI’s move could stifle innovation in the short term,” said Nitish Mittal, partner at Everest Group. “With fewer resources available, competitors might struggle to keep pace with OpenAI’s advancements. By restricting capital flow to competitors, OpenAI could consolidate more market share and talent, thus slowing down the growth of rivals.”