Accel reportedly in talks to lead $1B round for Thinking Machines at $40B valuation
Original reporting by TechCrunch
Thinking Machines is an AI research lab founded in early 2025 by former OpenAI CTO Mira Murati, and it is now reportedly in advanced discussions to raise $1 billion. This prospective funding round would value the company at a staggering $40 billion, a figure that, while immense, marks a notable decrease from the $50 billion valuation the startup reportedly pursued late last year. Existing investor Accel is said to be in talks to lead the new fundraise. This valuation represents an extraordinarily high revenue multiple, particularly given Thinking Machines' reported annual revenue run rate of just over $100 million.
A new chapter Launched to significant fanfare, Thinking Machines previously secured a monumental $2 billion seed round, valuing it at $12 billion. That initial investment, among the largest seed financings in history, was largely predicated on the impressive pedigree of Murati and the team of former OpenAI researchers who joined her. The company has since introduced Inkling, an open-weight model that generates revenue by charging usage-based compute fees for adapting models on its Tinker platform. However, the lab has also seen high-profile departures, with some co-founders returning to OpenAI, adding a layer of complexity to its rapid ascent as it navigates this new funding landscape.
This anticipated $1 billion capital injection, while slightly below Thinking Machines’ initial aspirations, solidifies its position as a major contender in the intensely competitive AI landscape. The reported $40 billion valuation, predicated on an exceptionally high revenue multiple relative to its current $100 million run rate, underscores the enduring investor confidence in the long-term vision and leadership of Mira Murati, even amidst high-profile co-founder departures. This willingness to invest aggressively reflects the ongoing ‘AI gold rush,’ where future potential, rather than immediate profitability, remains the primary driver of valuation in the frontier AI sector, placing immense pressure on these firms to deliver transformative results that justify such lofty expectations.
Strategic Shifts Ahead
The introduction of Inkling, an open-weight model monetized through usage-based compute fees on its Tinker platform, suggests a strategic adaptation by Thinking Machines in a market increasingly valuing flexibility and accessibility. This approach could herald a broader industry trend towards more open, modular AI architectures that balance proprietary development with community contribution, potentially redefining how AI products are adopted, customized, and scaled. For the wider AI ecosystem, this funding round is emblematic of the massive capital outlays still pouring into foundational model development, ensuring a continued arms race for talent, compute resources, and technological breakthroughs. It amplifies the pressure on all well-capitalized labs to swiftly demonstrate tangible progress and sustainable business models, setting an ever-higher bar for future innovation and market consolidation as the industry continues its rapid evolution towards more ubiquitous AI integration across every sector.
Frequently asked questions
- How much funding is AI lab Thinking Machines seeking to raise and at what valuation?
- Thinking Machines is reportedly in discussions to raise $1 billion in new funding. If successful, this round would value the AI lab at least $40 billion. This follows a previous $2 billion seed financing round, which valued the company at $12 billion, attracting investors largely due to its founder's pedigree.
- Who founded the AI lab Thinking Machines and what is their background in artificial intelligence?
- Thinking Machines was founded by Mira Murati, formerly the Chief Technology Officer (CTO) of OpenAI. She established the AI lab early last year, attracting many former OpenAI researchers to join her venture. Her significant experience at a leading AI development company contributed to early investor confidence and substantial initial funding for Thinking Machines.
- How does Thinking Machines generate revenue and what is its primary AI product offering?
- Thinking Machines generates revenue through its open-weight model, Inkling, which it introduced in July. The company charges usage-based compute fees for adapting models on proprietary data via its Tinker platform. This strategy contributes to an annual revenue run rate exceeding $100 million, supporting a high valuation in the competitive AI landscape.