Earlier quoted context omitted.
Are you implying that the revenue multiple on this acquisition is lower than openAIs and that they'd be making money by acquiring and folding into their valuation multiple? I think that's not the case and I would wager non existent. This was an acquihire (the author of ripgrep, rg, which codex uses nearly exclusively for file operations, is part of the team at Astral). So, 99% acquihire , 1% other financial trickery.…
They raised 4M USD, they have 26 full-time employees (they pay 120 200K / yr, cf https://pitchbook.com/profiles/company/523411-93 ). It means the company almost reached their runway, so all these employees would have to find a job. It's a very very good product, but it is open-source and Apache / MIT, so difficult to defend from anyone just clicking on fork. Especially a large company like OpenAI who has massive dist…
I'm not too plugged into venture cap on opensource/free tooling space but raising 3 rounds and growing your burn rate to $3M/yr in 24 months without revenue feels like a decently risky bag for those investors and staff without a revenue path or exit. I'd be curious to see if OpenAI went hunting for this or if it was placed in their lap by one of the investors.
OpenAI has infamously been offering huge compensation packages to acquire talent, this would be a relative deal if they got it at even a modest valuation. As noted, codex uses a lot of the tooling that this team built here and previously, OpenAI's realization that competitors that do one thing better than them (like claude with coding before codex) can open the door to getting disrupted if they lapse - lots of people I know are moving to claude for non-coding workflows because of it's reputation and relatively mature/advanced client tools.