Israeli Tech Founder Sells Camera Startup Glass to OpenAI for $300 Million

Ziv Aitar, an Israeli living in Silicon Valley for about a decade, has sold his photography technology company, Glass, to artificial intelligence giant OpenAI in a deal reportedly worth around $300 million. The acquisition, finalized in August, was kept under wraps for months as both companies collaborated on developing an innovative camera for future OpenAI devices. Aitar, who grew up in Israel's Jezreel Valley and studied mechanical engineering with a specialization in optics at the Technion, will lead OpenAI's camera development efforts.

Glass, founded by Aitar and Tom Bishop in 2019, specializes in AI-driven technology to enhance smartphone photography. The startup raised $32 million, with its last private funding round in May valuing it at $100 million. Investors, including Ground Up Ventures, Insight Partners, and GV, saw their investment triple in value within a year. The deal was reportedly settled in OpenAI stock, valuing the AI company at $852 billion at the time of the transaction.

Aitar previously sold his startup LinX, which developed technology to reduce the number of lenses in smartphone cameras, to Apple for tens of millions of dollars. He then worked at Apple before feeling unfulfilled and deciding to start Glass. Glass's technology uses AI to refine images at a sub-pixel level, improving sharpness and reducing noise, aiming to redefine smartphone camera capabilities.

While Glass initially focused on licensing its AI software to Chinese phone manufacturers, generating millions in revenue, the company's ultimate goal was to develop a new type of phone camera. They believed their approach, leveraging AI accelerators, could simplify camera hardware and reduce costs. Although Aitar had previously anticipated Apple might acquire his company, OpenAI approached Glass with the intention of integrating their technology into upcoming devices, potentially designed with former Apple designer Jony Ive.

Despite attempts to recruit AI engineers from Israel, many reportedly preferred to work in cybersecurity. The first investor in Glass was Israeli David Stark of Ground Up Ventures, who expressed strong belief in Aitar's vision from the company's inception. The deal's value was primarily in OpenAI stock, meaning investors will see a return on paper as OpenAI's valuation increases through future funding rounds or an IPO.