Accel reportedly in talks to lead $1B round for Thinking Machines at $40B valuation

Thinking Machines Lab Eyes $1 Billion Funding Round, $40 Billion Valuation

Thinking Machines Lab, the artificial intelligence startup established by former OpenAI Chief Technology Officer Mira Murati, is reportedly in advanced discussions to secure at least $1 billion in new funding. This significant investment round could push the company's valuation to a staggering $40 billion before the capital infusion.

The news, first reported by The Information, highlights the continued fervent investor interest in high-profile AI ventures. Accel, an existing investor in Thinking Machines Lab, is reportedly considering leading this substantial funding round. Additionally, chip giant Nvidia, another current backer, has also been in talks to participate.

This potential funding comes as Thinking Machines Lab reports an annual revenue run rate exceeding $100 million, a strong indicator of its commercial traction in the rapidly evolving AI market.

Who is Thinking Machines Lab?

Thinking Machines Lab is an American artificial intelligence startup that publicly launched in early 2025, having been founded by Mira Murati in late 2024 after her departure from OpenAI. The company's core mission is to develop AI systems that are more interpretable, collaborative, and can be tightly integrated into human workflows.

The startup aims to make AI systems more widely understood, customizable, and generally capable, emphasizing a future where everyone has access to the knowledge and tools needed to make AI work for their unique needs. This vision contrasts with the approach of some closed frontier AI labs, with Thinking Machines Lab advocating for a more decentralized AI built on local knowledge.

Thinking Machines Lab has two primary offerings: Inkling and Tinker. Inkling is their flagship open-weights large language model, released on July 15, 2026. "Open-weights" means the model's trained parameters are published, allowing developers and companies to download and modify it themselves, unlike proprietary models accessed only via API. Tinker, on the other hand, is a cloud fine-tuning tool that allows businesses to customize AI models using their own data.

The company's founding team included researchers and engineers from leading AI organizations like OpenAI, Meta AI, and Mistral AI. While some co-founders have since reportedly moved on to other roles, Murati remains at the helm.

Details of the Proposed Funding Round

The reported talks for a $1 billion funding round at a $40 billion valuation represent a significant moment for Thinking Machines Lab. This proposed valuation would mark a substantial increase from its previous funding round. In July 2025, the company raised a record-breaking $2 billion in a seed round, which valued it at $12 billion. That seed round was led by Andreessen Horowitz and included participation from a consortium of major investors such as Nvidia, AMD, Cisco, ServiceNow, Accel, and Jane Street.

The current discussions indicate strong confidence from existing investors like Accel and Nvidia. Accel, a prominent venture capital firm with a history of backing successful tech companies, recently raised $5 billion in new capital specifically aimed at late-stage AI investments. Their continued interest in Thinking Machines Lab, potentially as the lead investor, signals a belief in the startup's long-term potential.

Nvidia's potential participation is also noteworthy. The chipmaker has a strategic partnership with Thinking Machines Lab, which began in March with a "significant" investment and a multi-year deal to supply the AI startup with chips. This collaboration highlights the critical role of computing infrastructure in developing advanced AI models and Nvidia's strategy to support leading AI innovators.

It is worth noting that this $40 billion valuation, while impressive, is reportedly lower than the over $50 billion (some reports suggested as high as $55-60 billion) valuation the company sought in late 2025. Those earlier talks reportedly fell apart in January 2026, leading the valuation to revert to the $12 billion set during its seed round. Despite this earlier setback, the current discussions at a $40 billion mark underscore a renewed and strong investor appetite following the release of Inkling and the company's reported revenue growth.

Revenue and Business Model Insights

The description of the funding round mentions Thinking Machines Lab's annual revenue run rate stands at over $100 million. This revenue is primarily generated by selling businesses tools to customize AI models using their own data. The company's Tinker platform, a cloud fine-tuning service, is a key component of this revenue generation.

While their open-weight models like Inkling are available for free, the business model focuses on providing the infrastructure and services for enterprises to leverage these models effectively. This approach allows companies to utilize powerful AI without necessarily needing to build and maintain their own supercomputing resources.

The new capital from this funding round would be crucial for Thinking Machines Lab to continue its growth trajectory. The funds are earmarked for critical areas such as training advanced AI models, renting essential computing infrastructure, and expanding its team by hiring more employees. These investments are vital for any AI startup aiming to compete at the frontier of the industry, where the costs associated with research and development are exceptionally high.

Significance in the AI Landscape

The potential $40 billion valuation for Thinking Machines Lab reflects the ongoing intense competition and investment in the artificial intelligence sector. Even with the high costs involved in developing cutting-edge AI, investors are willing to place multibillion-dollar bets on independent AI labs.

Thinking Machines Lab is considered one of the "neolabs"—a group of high-profile AI startups raising significant capital to train foundation models and attract top talent. The company's strategy, focusing on open-weights models and customizable AI, presents an alternative to the purely closed-source approaches of some competitors. This could foster a more open and collaborative AI ecosystem, allowing a broader range of developers and businesses to innovate with AI.

However, the AI industry is not without its challenges. The reported executive turnover at Thinking Machines Lab, with some co-founders reportedly returning to OpenAI or joining other tech giants, highlights the fierce talent war in the AI space. Despite these movements, the strong investor interest suggests confidence in Murati's leadership and the company's strategic direction.

Looking Ahead

Should this funding round close as reported, it would provide Thinking Machines Lab with substantial resources to accelerate its research, development, and commercialization efforts. The capital injection would enable them to further refine their Inkling model, enhance the Tinker platform, and potentially explore new multimodal AI capabilities, which they view as critical for more natural and efficient human-AI communication.

The company's commitment to building interpretable and customizable AI systems could carve out a unique niche in a market increasingly demanding transparency and control over AI functionalities. With powerful backing from firms like Accel and strategic partnerships with industry leaders like Nvidia, Thinking Machines Lab is positioned to be a significant player in shaping the future of AI.

Frequently Asked Questions

What is Thinking Machines Lab?

Thinking Machines Lab is an artificial intelligence startup founded in late 2024 by Mira Murati, the former Chief Technology Officer of OpenAI. It focuses on developing interpretable, collaborative, and customizable AI systems, including open-weights models like Inkling and a fine-tuning platform called Tinker.

What is the reported valuation and funding amount?

Thinking Machines Lab is reportedly in talks to raise at least $1 billion in new funding, which would value the company at approximately $40 billion before the investment.

Which investors are involved in this potential funding round?

Existing investor Accel is reportedly considering leading the $1 billion funding round, and Nvidia, another current investor and strategic partner, has also been in discussions to participate.

What is Thinking Machines Lab's reported annual revenue?

The startup's annual revenue run rate is reported to be over $100 million. This revenue is primarily generated from selling tools that allow businesses to customize AI models with their own data.