Davidson confirmed the transaction in a social media announcement, writing, “I’m thrilled to announce that Odessia was acquired by OpenAI, and that I will be joining the team to focus on the future of travel.”
An OpenAI spokesperson also confirmed the acquisition to TechCrunch, describing Davidson as “a proven founder who has built multiple businesses to help people travel”.
The financial terms were not disclosed, and OpenAI has not explained how Odessia's technology might be incorporated into ChatGPT or its other products.
Odessia was founded less than a year ago and had already developed a functioning travel reservation platform. The San Francisco-based startup employed eight people and raised $6 million in June through a funding round led by Sequoia before opening its service to the public on October 14.
Its free AI concierge allowed customers to arrange travel through text messages, combining itinerary planning with the ability to reserve flights and accommodations. The platform was built using OpenAI's GPT-5.5 and Codex models.
Odessia also obtained accreditation from the International Air Transport Association, giving it the ability to issue airline tickets and provide access to private hotel pricing and additional benefits.
Despite its short operating history, the startup reported substantial early usage. Davidson said tens of thousands of customers used Odessia during the summer to plan travel representing an annualized value exceeding $60 million.
That figure reflects the value of travel being planned through the platform rather than confirmed company revenue. The startup's website now indicates that its service is no longer operating.
The acquisition comes as OpenAI introduces additional tools intended to connect businesses with consumers through ChatGPT. On the same day, the company announced Businesses in ChatGPT, a new offering that allows companies to manage verified profiles and interact with potential customers through specialized AI agents.
Those features provide businesses with ways to present product information and answer customer questions directly within ChatGPT. Odessia, meanwhile, brings experience with a more transaction-focused application of AI, where an assistant can move beyond recommendations to complete travel reservations.
OpenAI previously explored direct purchasing within ChatGPT through a commission-based checkout system, but discontinued that initiative in March after it failed to gain sufficient traction.
The company has since continued developing ways for users to discover products and interact with businesses through its chatbot. Whether Odessia's acquisition signals another attempt to enable direct transactions within ChatGPT remains unclear.
The deal also raises questions about OpenAI's relationships with existing travel platforms.
Booking.com and Expedia were among the first travel companies to integrate their applications into ChatGPT, while KAYAK also maintains a relationship with OpenAI. These integrations have allowed users to explore travel options through the chatbot while relying on established booking providers.
If OpenAI eventually introduces its own reservation capabilities, it could create additional competition with companies that already distribute their services through ChatGPT. However, OpenAI has not announced plans to replace those integrations or launch a competing consumer travel booking product.
Investors responded to the acquisition by selling shares of several major online travel companies.
According to Investing.com, Expedia shares declined as much as 5% on Tuesday, while Booking Holdings fell by up to 3% and Airbnb dropped approximately 3.5%. Separate reporting indicated that Tripadvisor also lost more than 3%.
The declines reflected investor concerns that AI assistants capable of completing bookings could eventually compete with established online travel agencies.
For OpenAI, the acquisition also brings a founder with experience developing consumer travel businesses.
Davidson previously co-founded Sonder in 2014 while he was a student. The hospitality company grew into an apartment-hotel operator and went public in 2022, with Davidson reporting that it reached approximately $600 million in annual revenue at its peak.
Sonder later experienced significant difficulties, losing its partnership with Marriott before entering bankruptcy proceedings in November 2025.
Davidson subsequently founded Odessia with a smaller team and a development approach built around extensive use of AI agents. In his acquisition announcement, he described employees coordinating multiple agents to accelerate work and said his own usage of the technology had increased “25x through 2026”.
He characterized the company's operating philosophy with the phrase “the best process is no process”.
That approach helped Odessia develop and launch its booking platform within its first year, although the company operated publicly for only a short period before the acquisition.
OpenAI has not specified Davidson's new responsibilities beyond his focus on travel technology, nor has it disclosed whether other Odessia employees will join the company.
The transaction comes as travel companies increasingly incorporate conversational AI into their services. Booking platforms have been developing tools that allow customers to research destinations, compare accommodations and manage reservations through natural-language interactions.
Odessia took that model further by combining planning and booking capabilities within a single assistant, supported by the infrastructure needed to issue airline tickets.
Its acquisition gives OpenAI additional expertise in that process, but the immediate outcome is the closure of Odessia's consumer service rather than the introduction of a new ChatGPT travel product.
For now, OpenAI has confirmed the purchase and Davidson's arrival, while leaving unanswered how the startup's technology will fit into its broader commercial strategy.
This analysis is based on reporting from TNW & PYMNTS.
Image courtesy of Odessia.
This article was generated with AI assistance and reviewed for accuracy and quality.
