A16z eyes leading mega round in former OpenAI CTO’s startup Thinking Machines

Silicon Valley VC firm Andreessen Horowitz is in talks to lead an early stage funding round of former OpenAI CTO Mira Murati’s startup, Thinking Machines.

Silicon Valley venture capital firm Andreessen Horowitz is in talks to lead an outsized early stage funding round of former OpenAI chief technology officer Mira Murati's startup, according to four sources familiar with the matter.

The startup, named Thinking Machines Lab, could be valued at $10 billion in the round, sources said, making it one of the most valuable AI startups in the world, despite only launching in February. The company, which has no revenue or products yet, is the latest entrant into the crowded space of companies building generative AI models. Thinking Machines has said it wants to build artificial intelligence systems that are safer, more reliable and aimed at a broader number of applications than rivals.

Reuters couldn't learn how much Andreessen Horowitz is in talks to invest in this round. Business Insider reported earlier this week the final amount of the entire round could be close to $2 billion. Another VC heavyweight, Sequoia Capital, is also in talks to join the funding round, another source said.

Thinking Machines Lab declined to comment. Andreessen Horowitz and Sequoia did not immediately respond to requests for comment.

The reception shows that investor enthusiasm toward new startups in AI remains extremely high, despite some questions about tech industry spending. An initial round of this size is not unprecedented: In September, former OpenAI chief scientist Ilya Sutskever raised $1 billion based on his reputation in the field.

Andreessen Horowitz, known as A16z, has made big bets in AI, backing competitors to AI heavyweight OpenAI. It has participated in large funding rounds for AI model startups including Elon Musk's xAI, Sutskever's Safe Superintelligence and France-based Mistral. It is currently raising a $20 billion megafund dedicated to later-stage investments in AI companies. If successfully raised, it would be the largest fund in the firm's history.

Murati announced Thinking Machines Lab in February with a team of around 30 leading AI researchers and engineers, two-thirds of whom were former OpenAI employees, showing Murati's ability to poach her previous employer's top talent. Since then, other former prominent OpenAI employees have joined Thinking Machines as advisers, including OpenAI's former chief research officer, Bob McGrew, and the lead researcher for many of OpenAI's flagship AI models, Alec Radford.