Thinking Machines in talks to raise $1 billion at $40 billion valuation
Quick Look
- Thinking Machines, the AI lab founded by former OpenAI CTO Mira Murati, is discussing a $1 billion funding round at a $40 billion valuation, according to The Information.
- Existing investor Accel may lead the round.
- The company's annual revenue run rate exceeds $100 million, implying a high revenue multiple.
AI-generated summary
Why It Matters
Thinking Machines was founded early last year by Mira Murati, former CTO of OpenAI. It previously raised a $2 billion seed round at a $12 billion valuation led by Andreessen Horowitz, with participation from Nvidia, GV, Lightspeed, and Conviction Partners. The company launched Inkling, an open-weight model, in July, which generates revenue through usage-based compute fees on its Tinker platform.
Thinking Machines, the AI lab founded early last year by former OpenAI CTO Mira Murati, is in discussions to raise $1 billion at a valuation of at least $40 billion, The Information reported Thursday. Existing backer Accel is in talks to lead the fundraise, according to our source and The Information’s reporting.
The new round, if it is completed, would value the company below the $50 billion valuation that Thinking Machines reportedly sought to secure late last year.
Thinking Machines’ annual revenue run rate stands at over $100 million, according to a source with knowledge of the company’s financials. At that revenue figure, a $40 billion valuation reflects an extraordinarily high revenue multiple.
Accel and Thinking Machines didn’t immediately respond to a request for comment.
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 on its Tinker platform.
The startup’s prior fundraise — a $2 billion round that stands among the largest seed financings in history — valued the company at $12 billion. Andreessen Horowitz led the investment, joined by Nvidia, GV, Lightspeed, and Conviction Partners. Investors backed the round largely on the pedigree of Murati and the former OpenAI researchers who joined her.
What to Watch
AI outlook — possibilities, not facts
Thinking Machines will close a $1 billion funding round within the next 2-3 months.
Likely · Within months
Thinking Machines' revenue run rate will grow significantly over the next 6-12 months as it scales the Tinker platform and Inkling model adoption.
Possible · Within months
Open Questions
- What specific use cases or customers drive Thinking Machines' $100M+ revenue run rate?
- How does the Tinker platform differentiate from competitors like Hugging Face or Replicate?
- Will the new round dilute existing investors, and what terms are being negotiated?
- Is the $40B valuation pre-money or post-money?
