Thinking Machines Reportedly Targets $40 Billion Valuation in New Funding Round

AI startup Thinking Machines is reportedly in talks to raise $1 billion in a funding round that could value the company at around $40 billion. The discussions were reported by The Information, with existing investor Accel reportedly considering leading the round.

If completed, the deal would value Thinking Machines below the $50 billion valuation the company was reportedly seeking previously. Accel and Thinking Machines have not commented on the reported fundraising discussions.

The company’s annual revenue run rate is above $100 million, according to a source familiar with its finances. Thinking Machines was founded by former OpenAI CTO Mira Murati and other former OpenAI researchers, attracting major investor interest due to the team’s background.

Thinking Machines expands AI model efforts

The startup previously raised a $2 billion seed round, one of the largest in history, at a $12 billion valuation. The round was led by Andreessen Horowitz, with participation from Nvidia, GV, Lightspeed, and Conviction Partners.

In July, Thinking Machines launched Inkling, an open-weight AI model that generates revenue through usage-based compute fees for adapting models on proprietary data through its Tinker platform.

The company has also experienced leadership changes, with some co-founders, including Lilian Weng and Luke Metz, returning to OpenAI.