Is PwC's OpenAI Enterprise Resale Deal Worth It?

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Crypto Update - 1. Mastercard launches Crypto Credential P2P pilot. | 2. PayPal USD stablecoin goes live on Solana. | 3. BlackRock's ETF becomes the largest bitcoin fund globally with $20B AUM.

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THE HOTTEST THING IN TECH
PWC’s OpenAI Enterprise Deal… is it worth it?

‘Big four’ accounting firm stalwart PricewaterhouseCoopers (PwC) just signed a first-of-its-kind deal with OpenAI to resell ChatGPT Enterprise globally as part of its $1B commitment to AI. The multinational professional service consultancy will offer Enterprise to its 100,000+ US and UK staff making them OpenAI’s largest customer. The tools will assist the team to review tax returns, generate proposal responses, assist with software development, monitor dashboards, compose reports and more.

Moreover, PwC can now sell the gen AI Enterprise service to its 178,707+ clients globally, and upsell its own customized AI services for accounting and business use. PwC will develop custom GPTs based on OpenAI models to complement its auditing, taxation, and consulting services.

Why Would Companies Choose PwC?

• Extensive experience in adopting AI across its own internal operations (PwC claims it has identified over 3,000 AI use cases.)

• Experienced business consultants will help them plan, ideate, and make a roadmap for effective AI use.

• Holistic approach and ability to leverage deep industry experience

• OpenAI’s enterprise LLM is the most powerful on the market to date

What is Enterprise AI?

ChatGPT Enterprise launched in 2023 and is tailored toward large business users with “enterprise-grade security,” data privacy, unlimited access to GPT-4, extended context windows, customization options, and company oversight capabilities. OpenAI claims to have 600,000+ enterprise clients including 93% of the Fortune 500. Other leading rivals include Cohere, Anthropic’s Scale AI partnership, Microsoft Azure’s Copilot service, and Amazon Bedrock.

Is it Worth it?

Based on known ChatGPT Enterprise rates, PwC is likely shelling out tens of millions a year and its certainly arguable that for this amount it could have built its own custom services internally using open-source models. However, this is clearly a strategic move to position itself alongside likely AI winners in OpenAI. Further, the potential revenue boost from reselling and upselling custom AI services to clients may pay for the initial outlay… and some. PwC isn’t alone in thinking this way. Rival firm Accenture partnered with Cohere in March to bring its LLMs and search capabilities to enterprises.

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PS: A new wave of deals is arriving shortly. Stay tuned!

1. Drug Development - New York - Non-addictive, non-opioid drug to treat 500 million people with chronic pain. $5.4 million in NIH grants, studies published in peer-reviewed journals. Raising $15 million via SAFE. (Seed+)
   

2. Multilingual Messaging Portal - Sydney, AU - Global, AWS-backed SaaS platform for businesses to communicate with clients without language barriers. $300k secured, seeking $650k for U.S. expansion. (Series A)

3. AI Agent Employees - New York - Sophisticated workflow automation for businesses, by a previously-exited founder. Building towards fully autonomous organizations. Backed by Tribe & Kenetic, rolling out to extensive waitlist. (Seed)

4. Outbound B2B Campaign AI Co-Pilot - Lexington, MA - Turn any CRM into an AI optimized sales agent for personalized customer campaigns. Founder previous exit to PE. Notable Angel on board. Top Hubspot App. Post revenue. (Seed)

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DEALS WE’RE WATCHING
Closed Deals:

Cooling for AI Chips - San Jose air-jet electronics cooling tech startup Frore Systems raised an $80M Series C led by Fidelity, with Prosperity7, Mayfield, Qualcomm Ventures, Stepstone, MVP, Addition, and Alumni.

B2B Construction Materials Marketplace - Indian startup Infra.market raised $50M at a $2.5B pmv to leverage tech to improve quality and supply chain visibility.

Deals to Watch:

Low-code Fintech - BlackRock led London/Bucharest-baased banking modernization software startup FintechOS’s $60M Series B extension. It saw 40% y-o-y revenue growth in ‘23 and expects to be in profit by H1 ‘24.

Perplexity - The leading AI Search startup is in talks to raise $250M led by Bessemer at $3B post-money, which is 3x higher than its last valuation.