OpenAI started 2024 with another strategic acquisition, absorbing the team behind Convogo, a software platform focused on leadership assessment and feedback. This move, characterized as an “acqui-hire,” demonstrates OpenAI’s continued pursuit of talent as it develops its broader artificial intelligence capabilities. The acquisition highlights the growing trend of acquisitions in the AI space as companies compete for specialized expertise.
The deal, confirmed by an OpenAI spokesperson, doesn’t include Convogo’s intellectual property or existing technology. Instead, OpenAI intends to integrate the Convogo team into its “AI cloud efforts,” signifying a focus on practical application and scaling of AI solutions. The three Convogo co-founders – Matt Cooper, Evan Cater, and Mike Gillett – will join OpenAI as part of an all-stock transaction.
OpenAI’s Ninth Acquisition in a Year
This marks OpenAI’s ninth acquisition in the past twelve months, according to data from PitchBook. The company is increasingly utilizing mergers and acquisitions not just for technology, but particularly as a rapid way to acquire skilled teams and accelerate development. This pattern of acquiring talent aligns with OpenAI’s ambitious goals in the rapidly evolving AI landscape.
Previously, OpenAI acquired Sky, integrating its Mac interface, and Statsig, a product testing company. However, many acquisitions, including those of Roi, Context.ai, and now Convogo, have resulted in the shutdown of the acquired product while the team joins OpenAI. This suggests a prioritization of talent integration over maintaining competing or overlapping products.
The Genesis of Convogo
Convogo began as a side project, a “weekend hackathon” sparked by a simple question from co-founder Matt Cooper’s mother, an executive coach. She enquired about the possibility of automating the time-consuming task of report writing, freeing up time to focus on client interaction. The platform subsequently grew, serving “thousands” of coaches and collaborating with “world’s top leadership development firms,” according to a Convogo announcement sent to users.
The Convogo team identified a critical challenge in the broader AI implementation: translating advanced model capabilities into tangible real-world improvements. They believe that creating purpose-built experiences, like they developed for the executive coaching world, is crucial to overcoming this hurdle. This philosophy is a key factor in their decision to join OpenAI.
Why OpenAI is Focused on “AI Cloud Efforts”
The term “AI cloud efforts” remains somewhat broad, but signifies OpenAI’s aim to move beyond solely offering foundational AI models like GPT-4. It suggests a larger strategy to build and deploy AI-powered tools and services tailored to specific professional industries. This move is consistent with the broader industry trend towards vertical AI solutions.
Industry analysts note that building readily deployable, useful applications on top of powerful AI models requires deep domain expertise. Acquiring teams, like Convogo, with specialized knowledge in areas like leadership development provides OpenAI with a competitive advantage. This also speaks to the increased importance of user experience (UX) in AI adoption, and the need to make these technologies accessible to non-technical users.
Meanwhile, other AI companies, like Google and Anthropic, are also employing similar acquisition strategies to bolster their teams and expand their capabilities. This competitive landscape reinforces the value of specialized talent and the speed at which innovation is occurring.
In contrast to most of its recent acquisitions, OpenAI’s deal with Jonny Ive’s io Products represents a different approach. This partnership aims to develop AI hardware and continues under a defined product roadmap, indicating a willingness to invest in some areas beyond simply absorbing talent. The io Products partnership focuses on a long-term, tangible product that differs significantly from the acqui-hire model seen with Convogo and others.
The shutdown of Convogo’s platform, while disappointing for existing users, is a common outcome of OpenAI’s acquisition strategy. This suggests the company is confident in its own internal capabilities and doesn’t see a strong benefit in maintaining the Convogo product in the long run. Focus will now shift on incorporating the team’s insights into future OpenAI product development, potentially related to enterprise solutions. The broader implications of this acquisition revolve around AI’s increasing integration into professional services and tools.
Looking ahead, OpenAI will likely continue to seek out strategic acquisitions to expand its talent pool and accelerate its AI cloud initiatives. The integration of the Convogo team is expected to happen over the coming months, and the impact of their expertise on future OpenAI products remains to be seen. The sustained pace of acquisitions suggests OpenAI is prioritizing growth and innovation through external expertise, a tactic likely to continue as the AI industry matures and competition intensifies.
