Thrive Holdings secures $2 billion from SoftBank and investors to acquire traditional businesses

SoftBank, Altimeter Reportedly Back Thrive Holdings' $2 Billion Raise For AI-Driven Acquisitions

Thrive Holdings, the year-old holding company affiliated with Josh Kushner's Thrive Capital, is reportedly raising about $2 billion from a group of high-profile investors to expand its AI-driven acquisition strategy. The financing is expected to include backing from SoftBank, Altimeter Capital, and D1 Capital Partners, The Information reported. The capital would be used to acquire traditional service businesses and overhaul their operations using artificial intelligence. Rather than investing directly in AI startups, Thrive Holdings acquires controlling stakes in established service businesses that have already consolidated smaller operators, then deploys AI to automate workflows and improve efficiency. The latest fundraising comes after Thrive Holdings previously secured $1 billion from institutional investors connected to Thrive Capital, Bloomberg reported. The firm first invested in OpenAI in 2023, when the company was valued at $29 billion. According to The Information, engineers from both companies developed an AI-powered tax-processing agent using OpenAI's Codex that is now being used by Current, a Thrive Holdings portfolio company that has acquired 48 accounting firms. Accounting and IT services have been the firm's initial focus, reflecting its thesis that AI can automate repetitive work, lower operating costs and improve margins across fragmented industries. The reported financing would deepen ties between Thrive Holdings and several of the technology sector's most active AI investors. SoftBank, Altimeter and D1 have all backed major AI companies, while SoftBank alone has committed more than $64 billion to OpenAI. In February, Thrive Capital raised more than $10 billion for a new fund, Thrive X, which targeted investments in AI applications, infrastructure, robotics, and life sciences. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Thrive Holdings Raises $2 Billion to Buy and Rewire Services Firms With AI | PYMNTS.com

The round marks the first time outside investors have committed capital to Thrive Holdings. The company previously raised $1 billion from existing institutional backers of Thrive Capital, the venture firm founded by Josh Kushner that manages about $50 billion in assets, the Information reported. The three new investors already have significant exposure to the AI sector. SoftBank has committed to invest more than $64 billion in OpenAI. Altimeter and D1 have backed both OpenAI and Anthropic. Thrive Holdings typically acquires controlling stakes in companies that have themselves purchased smaller services businesses, then revamps those firms with AI tools. The owners of the rolled-up companies retain meaningful equity in their businesses, Kushner said in a June blog post. The initiative is part of a broader wave of firms modeled on conglomerates like Constellation Software that have pursued roll-ups of traditional businesses with the aim of transforming them with AI, the Information reported. Milan-based Bending Spoons, which owns AOL, Vimeo and Eventbrite and went public on the Nasdaq last week with a market capitalization briefly exceeding $25 billion, applies a similar buy-and-hold strategy, acquiring established digital brands and overhauling them with AI and leaner operations, TechCrunch reported Sunday (July 5). OpenAI took a stake in Thrive Holdings late last year and is providing researchers as well as product and engineering talent for the initiative. Boris Power, OpenAI's head of applied research, holds a joint role at Thrive Holdings. Employees from Thrive and OpenAI say they co-built a tax-return processing agent using OpenAI's coding agent Codex, which is now used by Current, a portfolio company that has acquired 48 accounting firms. OpenAI has separately been expanding its enterprise push through similar deployment-focused vehicles. PYMNTS reported that when OpenAI first announced its stake in Thrive Holdings last December, it also unveiled a partnership with Accenture to roll out ChatGPT Enterprise to tens of thousands of the consulting firm's professionals.