Gerry Cardinale’s RedBird Capital Partners is expanding its reach into artificial intelligence and emerging technology, striking a $1 billion investment partnership with Guy Oseary’s Sound Ventures as the private equity firm continues to build its media and entertainment portfolio.
The agreement will see the two firms invest in businesses spanning technology, media and culture. RedBird will bring its investment platform and experience growing companies, while Sound Ventures contributes its relationships with technology founders and experience investing in AI startups.
“This partnership puts the power of RedBird’s institutional investment platform and strategic network firmly behind this next generation of business builders,” Cardinale said in a statement.
The partnership comes just weeks after RedBird invested another $4 billion in David Ellison’s Skydance, bringing its total commitment to the combined Paramount and Warner Bros. Discovery business to $6 billion. The new agreement gives RedBird another avenue to invest in technology companies alongside its portfolio of established media and entertainment businesses.
Sound Ventures has already made some high-profile bets in that sector. The firm, co-founded by Oseary and Ashton Kutcher in 2015, was an early backer of OpenAI and Anthropic, the companies behind ChatGPT and Claude, respectively. It has also invested in Spotify and Uber.
Kutcher stepped away from Sound Ventures earlier this year to start a separate venture capital firm, but remains a senior adviser.
RedBird’s own AI operation, RedBird X, will participate in the partnership. Led by Hamid Biglari, the team will work with Sound Ventures to evaluate potential investments and support companies after they receive funding.
The agreement also builds on RedBird’s recent push into digital publishing. In September, the firm agreed to acquire a majority stake in Puck, valuing the subscription-focused media company at approximately $250 million. RedBird’s other entertainment investments include Artists Equity, the production company co-founded by Ben Affleck and Matt Damon.
The announcement did not identify any initial investments under the partnership or specify how the $1 billion would be allocated between the firms. The Hollywood Reporter was first to report the news.
The post RedBird Capital, Sound Ventures Strike $1 Billion AI and Media Investment Deal appeared first on TheWrap.
