A16z Set to Lead $2 Billion Funding Round for AI Startup Founded by Ex-OpenAI CTO
Reuters2 weeks ago
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A16z Set to Lead $2 Billion Funding Round for AI Startup Founded by Ex-OpenAI CTO

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ai
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Summary:

  • A16z is in discussions to lead a $2 billion funding round for Thinking Machines Lab.

  • Thinking Machines could be valued at $10 billion despite having no products or revenue yet.

  • The startup aims to create safer and more reliable AI systems.

  • Murati's team includes top talent from OpenAI, enhancing its credibility.

  • A16z is raising a $20 billion megafund aimed at AI investments.

A New Player in AI

Silicon Valley venture capital firm Andreessen Horowitz (A16z) is reportedly in discussions to lead a significant early-stage funding round for Thinking Machines Lab, a startup founded by former OpenAI CTO Mira Murati. This startup could be valued at an impressive $10 billion, despite having no revenue or products at this stage.

The Ambitious Vision

Thinking Machines aims to create artificial intelligence systems that are safer, more reliable, and applicable across a broader range of uses than existing models. Launched in February, this startup quickly caught the attention of investors.

AI Illustration

Major Funding Involved

Sources indicate that the total funding round could approach $2 billion, with Sequoia Capital also in talks to participate. This level of investment reflects the high investor enthusiasm for AI startups, even amid questions regarding tech industry spending.

A Star-Studded Team

Mira Murati's team at Thinking Machines includes a significant number of former OpenAI talent, boosting the startup's credibility. Among them are Bob McGrew, OpenAI's former chief research officer, and Alec Radford, a lead researcher for many of OpenAI's flagship models. Murati herself was instrumental in developing transformative projects like ChatGPT and DALL-E during her tenure at OpenAI.

The Bigger Picture

Andreessen Horowitz, known for its aggressive investments in AI, is currently raising a $20 billion megafund aimed at supporting later-stage AI companies. If successful, this would mark the largest fund in the firm's history, showcasing the growing interest and potential in the AI landscape. Murati's recent departure from OpenAI has fueled a wave of similar moves among former executives, all aiming to establish their own AI ventures.

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