Thinking Machines Lab, the AI startup founded by former OpenAI chief technology officer Mira Murati, is set to close a $5 billion funding round led by Accel at a $40 billion pre-money valuation, according to multiple sources familiar with the matter.
The round, expected to close as soon as this week, would more than triple the company's valuation from its last public round last year, when it raised $2 billion at a valuation above $10 billion. The company had previously sought a $50 billion valuation, but those talks were abandoned.
Thinking Machines Lab emerged from stealth last year thanks to its leadership's deep ties to OpenAI. Murati serves as chief executive, and other key figures helped train early versions of ChatGPT. The startup's first tool, Tinker, enables users to more easily fine-tune large language AI models. The company released a new version of Tinker on Thursday, stating the model has seen gains in AI coding.
The startup has attracted top talent such as competitive coder Neal Wu. At the same time, the battle for AI talent has intensified, and Thinking Machines has lost many of its founding members, including Barret Zoph, Luke Metz and Andrew Tulloch, to rival companies. Business Insider reported in May that about a third of its founding team had left, driven by a mix of factors including large pay packages offered by rival AI labs such as Meta and OpenAI.
A representative for Thinking Machines Lab declined to comment. Accel did not respond to a request for comment.
Analysis
Why This Matters
- The $5 billion round at a $40 billion valuation shows investors remain willing to make enormous bets on AI labs despite industry talent wars and recent valuation pullbacks.
- The rapid increase in valuation from $10 billion to $40 billion within a year highlights the intense competition and high stakes in AI development.
- The loss of about a third of the founding team underlines the acute shortage of AI talent and the aggressive recruiting tactics of larger tech rivals.
Background
Thinking Machines Lab was founded by Mira Murati, former CTO of OpenAI. It emerged from stealth last year and raised a $2 billion seed round at a valuation above $10 billion before launching its first product, Tinker, a tool for fine-tuning large language models. The company recently released a new version of Tinker. It has been affected by the AI talent war, losing several founding members to Meta and OpenAI, which offered large compensation packages.
What to Watch
- Whether the funding round closes as planned and if Accel confirms its lead role.
- Further departures of key talent and how TML attempts to retain remaining team members.
- The performance and adoption of Tinker, which will be critical to justifying the startup's escalated valuation.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThinking Machines Lab is set to close a $5 billion funding round led by Accel at a $40 billion pre-money valuation, according to multiple sources familiar with the matter.All Content from Business Insider: “The startup is raising $5 billion at a $40 billion pre-money valuation, according to multiple sources familiar with the matter. Accel is leading the round, according to the sources.”
- SupportedThe round would more than triple the company’s valuation from its last public round last year.All Content from Business Insider: “This round would more than triple Thinking Machines' valuation from its last public round last year”
- SupportedThe funding round is amid an intensifying AI talent war and founding-team departures.All Content from Business Insider: “This round would more than triple Thinking Machines' valuation from its last public round last year, showing that investors are still willing to place enormous bets on AI labs even as the industry's talent war intensifies.”
- SupportedMira Murati founded Thinking Machines Lab and is its chief executive; she formerly served as OpenAI’s chief technology officer.All Content from Business Insider: “The startup was founded by Mira Murati, OpenAI's former chief technology officer.”
- SupportedThe round is expected to close as soon as this week.All Content from Business Insider: “AI startup Thinking Machines Lab is set to close a fresh round of funding as soon as this week.”
- SupportedLast year, Thinking Machines Lab raised a $2 billion round at a valuation above $10 billion.All Content from Business Insider: “Previously, Thinking Machines Lab, which was founded by Mira Murati, was valued at more than $10 billion and raised a $2 billion seed round last year before launching a product.”
- SupportedThinking Machines Lab had sought a $50 billion valuation, but those talks were abandoned.All Content from Business Insider: “Last year, the company was seeking a new round at a $50 billion valuation, but talks were abandoned.”
- SupportedThinking Machines Lab emerged from stealth last year, with its leadership’s ties to OpenAI contributing to its profile.All Content from Business Insider: “It emerged from stealth last year as one of the highest-profile AI labs thanks to its leadership's deep ties to OpenAI.”
- SupportedOther key figures at the startup helped train early versions of ChatGPT.All Content from Business Insider: “CEO Mira Murati previously served as OpenAI's chief technology officer, while other key figures helped train the early versions of ChatGPT.”
- SupportedThe company’s first tool, Tinker, helps users fine-tune large language AI models more easily.All Content from Business Insider: “The company's first tool, Tinker, is a system that enables users to more easily fine-tune large language AI models.”
- SupportedThinking Machines Lab released a new version of Tinker on Thursday and said it had seen gains in AI coding.All Content from Business Insider: “TML released a new version of Tinker on Thursday, stating that the model has seen gains in AI coding.”
- SupportedBusiness Insider reported in May that about a third of Thinking Machines Lab’s founding team had left, with factors including large pay packages from rival AI labs such as Meta and OpenAI.All Content from Business Insider: “As Business Insider reported in May, about a third of its founding team has left Thinking Machines, driven by a mix of factors including huge pay packages offered by rival AI labs like Meta and OpenAI.”
