If you can't beat 'em, join 'em.

• That's the emerging consensus among private equity firms, which are building consortiums to work alongside the AI giants that are threatening to gut their portfolios.

Driving the news: OpenAI and Anthropic each are in talks with different PE groups to create something akin to enterprise AI consulting arms.

Zoom in: The OpenAI discussions are with such firms as Advent International, Bain Capital, Brookfield, and TPG, as first reported by Reuters.

• A source says that the effort likely would be structured as a majority-owned subsidiary of OpenAI, staffed by forward-deployed engineers who could both advise and implement. The PE firms would serve as minority investors and initial customers.
• Anthropic's discussions are with such firms as Blackstone, Hellman & Friedman and Permira, and were first reported by The Information.
• This one may be structured more like a joint venture, although no final decisions have been made. The talks began several months ago (i.e., before Anthropic's dustup with the Pentagon).
• It's unclear if either deal would require exclusivity, although it sounds unlikely.

The big picture: Private equity wants a seat at the AI table.

• Not only because portfolios are chock-full of software companies under siege, but also because many of their other portfolio companies don't really know how to best integrate AI.
• Yes, they could pay for OpenAI or Anthropic licenses. But then what? More than a few CEOs have lamented the time and money already lost on failed AI experiments.
• For the AI companies themselves, this is about pushing deeper into the enterprise — where the checks are bigger and the revenue is usually recurring.
• It's a whole lot faster for OpenAI and Anthropic to partner with PE firms than to approach each of their portfolio companies independently, and these efforts could be a test ground for non-PE enterprise clients.

Flashback: If all of this sounds familiar, you're perhaps old enough (I'm sorry, experienced enough) to remember Avanade — a JV formed in 2000 between Microsoft and Accenture to implement Windows and other Microsoft solutions into large enterprises.

• Not apples-to-apples, but similar enough. In that case, Accenture eventually acquired a control stake, with Microsoft retaining a minority position.
• Meanwhile, Accenture just yesterday completed its acquisition of Faculty, a VC-backed company in London that helps corporate clients adopt AI.

The bottom line: Private equity and Big AI need each other.

Mastercard (NYSE: MA) has agreed to acquire London-based stablecoin infrastructure startup BVNK for up to $1.8 billion, including $300 million of contingent payments.

Why it's the BFD: Legacy payment providers are seeking to retain control over how money moves, even if the rails themselves change.

ROI: BVNK had raised around $100 million from Coinbase Ventures, Haun Ventures, Tiger Global, Visa Ventures, DRW Venture Capital, Avenir, and Scribble Ventures.

• It held takeover talks last year with both Mastercard and Coinbase, but seemed to be further along with Coinbase before the crypto exchange bailed in late fall. Mastercard, meanwhile, briefly kicked tires on BVNK rival Zerohash.
• One possibility is that Coinbase was more worried about revenue than is Mastercard, which primarily wants the technology.

The bottom line: "Mastercard isn't just partnering with crypto, it's buying its way into the stack to avoid being disintermediated." — Ryan Lawler, Axios Pro

• Cambridge Aerospace, a British air defense startup, is in talks to raise around $200m at a $1b valuation, per the FT. axios.link/4uwcHoC

⚡️ Frore Systems, a San Jose, Calif.-based data center cooling startup, raised $143m in Series D funding at around a $1.64b valuation. MVP Ventures led, joined by Fidelity, Top Tier, Mayfield Fund, Clear Ventures, Addition, Qualcomm Ventures, StepStone Group, and Alumni Ventures. axios.link/4lwrnQB

🌎 ReNew Green Energy Solutions, an Indian decarbonization company, raised $95m. LeapFrog Investments led, joined by Emerging Market Climate Action Fund and Carlyle AlpInvest as co-investors. axios.link/47IioWH

• Upvest, a German investment infrastructure firm, raised $90m. Sapphire Ventures and Tencent led, joined by insiders BlackRock and Bessemer Venture Partners. It also secured $35m in debt financing. axios.link/4lveMgw

🚑 R1 Therapeutics, a Redwood City, Calif., biotech focused on chronic kidney disease, raised $77.5m in Series A funding from Abingworth, F-Prime Capital, DaVita Venture Group, Curie.Bio, SymBiosis, and U.S. Renal Care. axios.link/4byJd0N

• Surf AI, an NYC-based agentic ops platform for security teams, raised $57m, per Axios Pro. Accel led, joined by insiders Cyberstarts and Boldstart Ventures. axios.link/4187yFN

⚡️ GA Drilling, a Houston-based developer of geothermal drilling tech, raised $44m. TomEnterprise led, joined by Underground Ventures. axios.link/4bdKewj

• Native, a Seattle-based cloud security startup, raised $42m, per Axios Pro. Ballistic Ventures led, joined by General Catalyst, YL Ventures, and Merlin Ventures. axios.link/4187xld

🚑 Turquoise Health, a San Diego-based health-care pricing startup, raised $40m in Series C funding, per Axios Pro. Oak HC/FT led, joined by insiders a16z, Adams Street Partners, and Yosemite. axios.link/4cNjOCQ

• Atlys, an Indian digital visa processing platform, raised $36m in Series C funding. Susquehanna Asia Venture Capital led, joined by Elevation Capital, Long Journey Ventures, Peak XV Partners, and MakeMyTrip. axios.link/3P4dA7U

• MetaComp, a Singaporean digital assets infrastructure firm, raised $35m from Alibaba and Spark Venture. axios.link/47ow89h

• Fuse, an NYC-based loan origination system startup, raised $25m in Series A funding from Footwork, Primary Venture Partners, NextView Ventures, and Commerce Ventures. axios.link/47zEZVq

• Knox Systems, a cloud provider for the U.S. federal government, raised $25m in Series A funding. B Capital led, joined by M12, Okta Ventures, MongoDB Ventures, Hearst Ventures, and Benchstrength. axios.link/3NmQ6uc

• Tracebit, a threat detection and deception startup, raised $20m in Series A funding, per Axios Pro. FirstMark led, joined by Accel, MMC Ventures, Tapestry VC, and CCL. axios.link/3NFinfy

• Chorus Intelligence, a U.K. provider of digital intelligence and investigative software, raised £15m from Maven Capital Partners. axios.link/47HGvEX

🌎 WeSort AI, a German developer of recycling sorting tech, raised €10m from Infinity Recycling, Green Generation Fund, Vent.io, and the Sprind agency. axios.link/3PEo9yu

🌎 AgZen, a Somerville, Mass.-based developer of smart irrigation systems, raised $10m in Series B funding. DCVC Bio led, joined by Material Impact and Astanor. axios.link/4uGbs6D

🚑 iDEL Therapeutics, a German oncology biotech, raised €9m in seed funding. BioMedVC led, joined by NRW.Venture, Gründerfonds Ruhr and KHAN Technology Transfer. axios.link/4sPom0g

• Choice, a Prague-founded ordering platform for restaurants, raised $7.1m in Series A funding. Alea Capital Partners led, joined by Reflex Capital, Smartlink, and J&T Ventures. axios.link/4seOUs0

🚑 HeartIO, a Pittsburgh-based cardio diagnostic platform, raised $4.25m in seed funding from Bessel, VU Venture Partners, Intelligence Ventures, LiveX, and Audacious Capital. axios.link/418doHf

• Certiv, a Seattle-based provider of endpoint security for AI agents, raised $4.2m in pre-seed funding from Aviso Ventures, Founders' Co-op, and Fortson. axios.link/40AEPJC

🌎 Grodi, Spanish robotic crop sensor and data provider, raised €2.5m. Swanlaab Innvierte Agri FoodTech led, joined by Axon Desarrollo Andalucía and Innvierte. axios.link/3PeFZIi

• Eileen, a Pittsburgh-based retail tech startup, raised $1m in pre-seed funding led by Top Shelf Ventures. axios.link/40U7l9r

• Apollo is in talks to acquire a minority stake in Syntegon, a German maker of packaging machines that could be valued at €4b, from CVC Capital Partners, per Bloomberg. axios.link/4sTchHv

⚡️ Black Bay Partners invested in Altara, a Rogers, Ark.-based provider of hydrogen sulfide removal solutions for sour oil and water production. axios.link/4bdIinF

• Capstone Point acquired the entertainment media division of Optimal, a media planning and buying agency backed by Orix Capital Partners. axios.link/4rvEdQt

• Edelman Financial Engines, a portfolio company of Hellman & Friedman and Warburg Pincus, announced a $175m equity distribution to the company's financial planners. axios.link/4cRjdjv

🎵 GoldState Music and TA Associates invested in Too Lost, a music tech and services platform for independent artists and record labels. axios.link/4ltNNlo

⚡️ MidOcean Energy, a LNG company formed by EIG, raised more thasn $1.2b in new equity funding from backers like Idemitsu Kosan ($500m). axios.link/4lvd92m

• Nordic Capital acquired TradingHub, a London-based provider of surveillance software for financial institutions, from Summit Partners (which retains a minority stake). axios.link/3NqKAGI

• Oakley Capital invested in Groupe Senef, a French provider of cloud vertical software. axios.link/4uDeYi4

• PennAero, a portfolio company of Tinicum and Blackstone, acquired the aerospace assets of TriMas, a Bloomfield Hills, Mich.-based packaging materials company. axios.link/4sghBov

• Proviso Capital acquired American Color Imaging, a Cedar Falls, Iowa-based photo lab. axios.link/4sLVbei

• Rewind Restoration Partners, backed by LP First Capital and Align Collaborate,acquired Millersville, Md.-based Aaction Restoration. rewindrestoration.com

• Technimark, an Oak Hill Capital portfolio company, acquired Rage Custom Plastics, a Hilliard, Ohio-based provider of blow and injection-molded plastic products for health care. axios.link/4dvd8tc

• Janus Living, a Denver-based senior housing REIT being carved out of Healthpeak Properties (NYSE: DOC), set IPO terms to 37m shares at $18-$20. It would have a $4.8b fully diluted value, were it to price in the middle, and plans to list on the NYSE (JAN). axios.link/40yIY0I

• Advent International and Cinven are in talks to sell TK Elevator, a German company they bought from Thyssenkrupp for €17.2b in 2020, to Finland's Kone for upwards of €25b, per Bloomberg. axios.link/4rBO4Em

• L Catterton is seeking to sell supplements maker Thorne for up to $4b, per Axios Pro. axios.link/4uyUMhd

• Tailscale, a Toronto-based corporate VPN startup that's raised over US$270m from firms like Accel and CRV, bought Vancouver-based cybersecurity rival Border0, whose backers included a16z and Venrock. axios.link/4brFp1h

• Warburg Pincus is seeking to sell Exeter Finance, an Irving, Texas-based subprime auto lender that could fetch up to $3b, per Bloomberg. axios.link/3NtIaHx

• AeroVironment (Nasdaq: AVAV) acquired ESAero, a ​San Luis Obispo, Calif., maker of unmanned aerial systems. axios.link/3PafOTe

• Apple (Nasdaq: AAPL) acquired MotionVFX, a Polish developer of software for creators. axios.link/3NGPEHd

🎢 Jana Partners is pushing Six Flags (NYSE: FUN) to explore a sale, per Reuters. axios.link/419rx73

• Société Générale (Paris: SOGN) agreed to sell its custody account-keeping service in France to Credit Mutuel Arkea. axios.link/419jrve

• Victory Capital (Nasdaq: VCTR) increased its takeover offer for Janus Henderson (NYSE: JHG) to $8.6b. Janus Henderson recently rejected an $8.5b bid from Victory, continuing to favor a $7.4b offer from Trian Fund Management and General Catalyst. axios.link/40AZ6ik

• Gradient, which spun out of Google last year, raised $220m for its latest AI-focused seed fund. axios.link/4drZNSt

• Sands Capital raised $1.1b for its third "global innovations" fund. axios.link/3Nb1dGy

Margaret Ryan quit as the SEC's enforcement chief, after just six months on the job. This comes at the same time that the agency is prepping a proposal to cut corporate reporting requirements from quarterly to twice per year.

• Tim Brown, former CISO of SolarWinds, joined Israeli VC firm Team 8 as CISO-in-residence. axios.link/3PaDHKk

• Kate Burkhardt joined Autotech Ventures as senior principal. She previously was with YL Ventures. axios.link/47wLvfG

• Jarrod Huffman joined law firm Mayer Brown as an LA-based partner in its global funds and asset management practice. He previously was with Morgan Lewis. mayerbrown.com

• Bryce Keane (ex-Atomico) joined Sequoia Capital as a communications advisor for Europe. axios.link/4lAW8E4