Opendoor Pivots to AI-Driven Underwriting, Completing 750 Weekly Assessments Despite Stock Slide

Opendoor Accelerates Deal Flow with AI-Driven Underwriting

Opendoor Technologies Inc. (OPEN) is aggressively implementing a new operational strategy centered on artificial intelligence, successfully completing nearly 750 home assessments per week using AI-driven underwriting. This pivot, spearheaded by CEO Kaz Nejatian, marks a decisive move to restore the company's acquisition velocity and improve consistency in its pricing models, positioning it as a software company rather than a housing speculator.

The strategic reset, dubbed “Opendoor 2.0,” focuses on embracing tighter acquisition spreads and leveraging technology to accelerate deal flow. Nejatian, who took the helm recently, has repeatedly emphasized that “the old Opendoor had lost faith in the power of software.” The previous leadership’s cautious approach had slowed risk-taking so dramatically that the company bought fewer homes than at any time since 2017, excluding the pandemic period.

Q3 2025 Performance and Legacy Inventory

The company’s third-quarter 2025 performance was heavily influenced by decisions made under the prior management team. These decisions included tightening spreads, which slowed acquisitions, and left the company holding older, lower-quality inventory that it is now working to sell. This legacy inventory management has weighed on recent results and market perception.

However, the adoption of the new pricing and operational model has already yielded measurable results. The company’s acquisition rate almost doubled within weeks of implementation, demonstrating the immediate impact of the AI-driven underwriting system on operational scalability. By resetting its acquisition spreads, Opendoor aims for greater consistency and a more scalable business model.

Market Reaction and Sector Context

Despite the internal operational improvements, Opendoor’s stock has experienced significant volatility, tumbling 11% in the last month. Analysts suggest that this recent pullback needs to be viewed in the context of the broader housing and technology cycle, which is also impacting rivals like Zillow and Offerpad. The stock slide appears to reflect general market caution regarding the iBuying sector's long-term potential and profitability, rather than a fundamental collapse in Opendoor’s new strategy.

Opendoor resets its acquisition spreads, embracing tighter pricing and AI-driven underwriting to boost consistency and accelerate deal flow.

The core thesis of Opendoor 2.0 is transforming the company into a technology platform where software, not human discretion, drives the core underwriting process. This shift is intended to reduce risk, increase transaction speed, and ultimately make the business model more resilient across different housing market cycles. By focusing on software, Opendoor aims to differentiate itself from competitors and prove that its model can achieve profitability at scale.

Forward Outlook: Software Over Speculation

The company is betting that its accelerated pace of home assessments—nearly 750 per week—will translate into higher quality acquisitions and a faster inventory turnover rate in the coming quarters. The focus is now on maintaining this velocity while ensuring the tighter acquisition spreads deliver the necessary margins. The success of this strategy hinges on the accuracy and reliability of the AI models in predicting future home values and repair costs, minimizing the risk associated with holding inventory.

• The new strategy prioritizes software development and risk management over aggressive market speculation.
• The doubling of the acquisition rate shortly after the new model adoption signals strong operational momentum.
• The company must navigate the sale of older, lower-quality inventory acquired under previous leadership while scaling the new, higher-quality acquisitions.