OpenAI, the artificial intelligence (AI) company co-founded by Sam Altman and Greg Brockman, has acquired Hiro Finance, an AI startup specializing in personal finance tools. The deal has been finalized by both companies, though the exact amount was not disclosed. As part of the acquisition, Hiro will shut down its services, with its entire team set to join OpenAI, and all user data will be permanently deleted from its servers.
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Ethan Bloch, the founder of Hiro Finance, launched the startup’s flagship AI product just five months ago. The tool allowed users to enter their salary, debts, and monthly expenses, then showed them different scenarios to help them make better financial decisions. Hiro was also designed to handle financial calculations accurately, allowing users to double-check its results at any time. This solves a major real-world problem that many people experience in financial management.
Despite its great features, Hiro will officially shut down operations on April 20 and delete all user data by May 13 as part of the company’s agreement with OpenAI. Notably, the new deal is widely seen as an acquihire, meaning OpenAI was primarily interested in the people behind the product rather than the tool itself.
OpenAI Adds Talent as It Expands into Finance
With the acquisition now finalized, Bloch and his team at Hiro will join OpenAI, although the total number of employees was not disclosed. LinkedIn suggests the team consists of roughly ten people. For OpenAI, the deal is a means of adding to its pool of talented employees, likely to drive more growth and innovation in the company.
Notably, Bloch brings a rare combination of fintech experience and a proven track record of building consumer financial products that people trust. With his team on board, OpenAI is well-placed to develop financial planning features within its AI product, ChatGPT. This could bring in personalized financial guidance to the millions of users who currently cannot afford professional advice. Given that OpenAI already markets ChatGPT to business finance teams, adding a tool related to that niche could significantly broaden its appeal to consumers.
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