Thinking Machines in Talks for $1 Billion Round Led by Accel at $40 Billion Valuation
Artificial intelligence lab Thinking Machines is in discussions to secure $1 billion in fresh capital at a valuation of at least $40 billion, according to reports from The Information. Venture capital firm Accel, an existing investor in the startup, is reportedly in discussions to lead the financing round.
What Happened
Founded early last year by former OpenAI Chief Technology Officer Mira Murati, Thinking Machines is actively negotiating a major new investment round. The proposed transaction, if finalized, would value the venture at a minimum of $40 billion. While substantial, this figure sits below the $50 billion valuation the company reportedly aimed to achieve late last year.
The talks come following the company’s historic initial fundraising. Previously, Thinking Machines raised a $2 billion seed financing round—one of the largest seed rounds in corporate history—which valued the startup at $12 billion. That earlier round was led by Andreessen Horowitz, with participation from notable investors including Nvidia, GV, Lightspeed, and Conviction Partners.
Key Highlights
- Proposed Investment: Discussions involve a $1 billion funding round led by existing investor Accel.
- Target Valuation: The deal would value Thinking Machines at a minimum of $40 billion, down from a previously targeted $50 billion valuation.
- Financial Performance: A source with knowledge of company financials indicates an annual revenue run rate exceeding $100 million.
- Revenue Model: The startup generates income via Inkling, an open-weight model released in July that charges usage-based compute fees for model adaptation on proprietary data through its Tinker platform.
- Prior Capital: The lab previously raised $2 billion at a $12 billion valuation backed by Andreessen Horowitz, Nvidia, GV, Lightspeed, and Conviction Partners.
- Executive Movements: Co-founders including Lilian Weng and Luke Metz have departed the startup to return to OpenAI.
Why This Matters
The reported terms highlight intense investor appetite alongside significant financial expectations. At an annual revenue run rate of over $100 million, a $40 billion valuation represents an extraordinarily steep revenue multiple.
Earlier investor commitments were driven primarily by the pedigree of Murati and the former OpenAI researchers who accompanied her. The latest talks indicate continued investor interest even as the startup navigates key personnel shifts, including the departure of co-founders Lilian Weng and Luke Metz back to OpenAI.
What to Watch Next
Neither Accel nor Thinking Machines immediately responded to requests for comment regarding the talks. Observers will be monitoring whether the $1 billion round closes under the reported terms and how the startup further expands compute adaptation on its Tinker platform.
Frequently Asked Questions
Who founded Thinking Machines?
Thinking Machines was established early last year by Mira Murati, the former Chief Technology Officer of OpenAI, along with former OpenAI researchers.
What are the details of the reported funding round?
The company is in talks to raise $1 billion at a valuation of at least $40 billion, with venture firm Accel in discussions to lead the round.
How does Thinking Machines generate revenue?
In July, the company released Inkling, an open-weight AI model. It earns revenue by charging usage-based compute fees when clients adapt models using proprietary data on its Tinker platform, yielding an annual revenue run rate of more than $100 million.
Which co-founders recently left the company?
Thinking Machines has experienced several high-profile departures, including co-founders Lilian Weng and Luke Metz, both of whom returned to OpenAI.
Source: Reporting based on information published by The Information and TechCrunch.