Thinking Machines Eyes $1B Round at $40B Valuation

Thinking Machines, the artificial intelligence research lab established last year by former OpenAI Chief Technology Officer Mira Murati, is negotiating a new $1 billion investment round. Venture capital firm Accel is reportedly in discussions to lead the financing, which would value the startup at a minimum of $40 billion. While this valuation represents a massive step up from the company's previous financing, it falls slightly short of the $50 billion figure the startup reportedly aimed for late last year.

The proposed $40 billion valuation represents an exceptionally high multiple on the startup's current financial performance. Thinking Machines currently generates an annual revenue run rate of more than $100 million. This funding round follows an earlier, record-breaking $2 billion seed round that valued the firm at $12 billion. That initial investment was led by Andreessen Horowitz, with participation from major industry players including Nvidia, GV, Lightspeed, and Conviction Partners.

For developers and enterprise practitioners, Thinking Machines offers a distinct approach to model customization. In July, the startup launched Inkling, an open-weight model. The company monetizes this technology by charging usage-based compute fees when clients adapt models to their own proprietary datasets using the startup's Tinker platform. This setup provides practitioners with a flexible, open-weight alternative to fully proprietary systems, allowing them to fine-tune models on sensitive data without committing to rigid subscription contracts.

The massive valuation comes despite recent shifts in the startup's core technical team. Founded largely on the reputation of Murati and a cohort of former OpenAI researchers, Thinking Machines has recently experienced several high-profile departures. Co-founders Lilian Weng and Luke Metz both chose to leave the startup to return to OpenAI, highlighting the volatile talent market currently shaping the competitive AI landscape.