New Anthropic, Blackstone-backed AI services firm acquires Fractional AI
An unnamed AI services firm backed by Anthropic, Blackstone, Hellman & Friedman, and Goldman Sachs has acquired Fractional AI, a San Francisco-based applied AI company, to accelerate enterprise deployment of Anthropic’s Claude model. The venture, announced on May 4 with a $1.5 billion investment, aims to embed AI engineers directly into client operations, leveraging Fractional AI’s expertise in scaling generative AI solutions for mid-sized businesses.
An AI services firm backed by Anthropic PBC, Blackstone Inc., Hellman & Friedman LLC, and Goldman Sachs Group Inc. has acquired Fractional AI Inc., a San Francisco-based applied AI services company. The deal, announced on May 4, provides the new venture with a team specializing in embedding generative AI into enterprise workflows, with financial terms undisclosed. Fractional AI was founded in 2024 by Chris Taylor, Eddie Siegel, and Travis May, former LiveRamp Holdings Inc. executives. The company focuses on transitioning generative AI from pilot projects to full-scale production, offering end-to-end implementation for businesses. Its engineering team will collaborate with Anthropic’s Applied AI organization to rebuild client systems around frontier AI capabilities. The venture, which secured $1.5 billion in funding, plans to differentiate itself from traditional consulting firms by deploying engineers into client operations rather than relying on slide decks. Blackstone and its partners intend to use their portfolio companies—spanning healthcare, manufacturing, financial services, retail, and real estate—as initial customers before expanding to the broader midmarket. Anthropic’s Garvan Doyle emphasized the need for engineering expertise to integrate AI effectively, highlighting Fractional AI’s ability to deliver transformative solutions. Fractional AI’s CEO, Taylor, and CTO, Siegel, described a ‘multitrillion-dollar gap’ between current business operations and AI-driven potential. Blackstone’s Rodney Zemmel noted the firm’s prior collaboration with Fractional AI across its portfolio, praising its ability to attract elite AI engineers. The acquisition aligns with Anthropic’s push into enterprise distribution, following recent partnerships with KPMG and PricewaterhouseCoopers LLP to integrate Claude into their operations. KPMG’s alliance, announced on May 19, embeds Claude across its 276,000-person workforce, positioning the firm as Anthropic’s preferred partner for private equity clients.
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