Anthropic-Blackstone AI Firm Acquires Fractional AI

A newly formed AI services venture backed by Anthropic, Blackstone, Hellman & Friedman, and Goldman Sachs has acquired San Francisco-based Fractional AI, giving the still-unnamed firm a ready-made engineering team to embed generative AI into enterprise operations. Financial terms were not disclosed. Founded in 2024 by former LiveRamp executives, Fractional AI specializes in moving generative AI from pilot to production. The $1.5 billion venture plans to deploy engineers directly into client operations, initially targeting Blackstone's portfolio companies across healthcare, manufacturing, financial services, retail, and real estate before expanding into the broader midmarket.