OpenAI has agreed to acquire the team behind Convogo, a business software startup focused on automating leadership assessments and feedback reporting, in a deal that brings the founders into OpenAI while shutting down Convogo’s product.
Acqui-Hire Focuses On Talent, Not Technology
An OpenAI spokesperson confirmed that OpenAI is not acquiring Convogo’s intellectual property or underlying technology. Instead, the transaction centers on hiring Convogo’s team to work on OpenAI’s AI cloud efforts. The deal was described by a source familiar with the matter as an all-stock transaction.
The three Convogo co-founders, Matt Cooper, Evan Cater, and Mike Gillett, will join OpenAI as part of the agreement. Convogo’s existing product will be wound down.
Convogo’s Origins And Customer Base
Convogo began as a weekend hackathon project after a question raised by Cooper’s mother, an executive coach, about whether AI could automate the time-consuming work of report writing. The goal was to allow coaches to focus more on direct client interaction rather than administrative tasks.
Over the past two years, Convogo said it supported thousands of coaches and worked with what it described as the world’s top leadership development firms. The platform was used by executive coaches, consultants, talent leaders, and HR teams to streamline leadership assessments and feedback reporting.
Founders Cite Gap Between Models And Real-World Use
In an email announcing the acquisition, the Convogo team said their work revealed a persistent challenge in applying advances in AI models to practical outcomes. The founders said the gap lies in translating new capabilities into usable tools for professionals.
They wrote that purpose-built experiences are key to addressing this challenge and said joining OpenAI would allow them to continue working on making AI more accessible and useful across industries.
Part Of A Broader Acquisition Pattern
According to data from PitchBook, the Convogo transaction represents OpenAI’s ninth acquisition within a one-year period. In most of these deals, the acquired product was either integrated into OpenAI’s ecosystem or discontinued as the team joined the company.
Examples include Sky, an AI interface for Mac, and Statsig, a product testing firm, which were incorporated into OpenAI’s offerings. Other acquisitions, such as Roi, Context.ai, and Crossing Minds, resulted in product shutdowns following the hires.
Notable Exception In OpenAI’s M&A Activity
One exception to this pattern is OpenAI’s acquisition of io Products, the company founded by Jony Ive, which continues to operate its own product roadmap. OpenAI and io Products are working together on the development of AI hardware, with the acquired company remaining active rather than being dissolved.
Featured image credits: Wikimedia Commons
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