Thinking Machines, the AI lab founded early last year by former OpenAI CTO Mira Murati, is reportedly in discussions to raise $1 billion at a valuation of at least $40 billion, The Information reported Thursday. According to that report and a source familiar with the matter, existing backer Accel is in talks to lead the fundraising.
Details of the potential round
If completed, the new financing would still fall short of the roughly $50 billion valuation Thinking Machines reportedly sought late last year. A source with knowledge of the company’s financials said Thinking Machines’ annual revenue run rate exceeds $100 million; at that revenue level a $40 billion valuation implies an unusually high revenue multiple.
Accel and Thinking Machines did not immediately respond to requests for comment.
Product and earlier funding
In July the company introduced Inkling, an open-weight model that generates revenue by charging usage-based compute fees for adapting models on proprietary data via its Tinker platform.
Previously, Thinking Machines raised a $2 billion funding round—one of the largest seed financings on record—that valued the company at $12 billion. That round was led by Andreessen Horowitz and included Nvidia, GV, Lightspeed, and Conviction Partners. Investors were reported to have backed the round largely on the pedigree of Mira Murati and several former OpenAI researchers who joined her.
Executive departures
Since founding, Thinking Machines has seen several high-profile departures: some co-founders, including Lilian Weng and Luke Metz, have returned to OpenAI.
Why this matters
The proposed capital raise and the reported valuation highlight continued investor appetite for AI startups, but the disparity between reported revenue and the valuation points to elevated valuation multiples and attendant risk around future performance and expectations.
(Reporting based on The Information’s Thursday report and a source familiar with the company’s finances.)
