Nvidia is reportedly in talks to invest $2.5 billion in Thinking Machines Lab, the AI startup founded by former OpenAI CTO Mira Murati. The potential deal could value the company at over $40 billion, marking Nvidia's latest major bet in the AI model layer.
TL;DR
- Nvidia is reportedly investing $2.5 billion in Thinking Machines Lab, founded by ex-OpenAI CTO Mira Murati.
- The deal could value the company at over $40 billion, a significant increase from its $12 billion valuation last year.
- This investment is part of Nvidia's broader strategy to dominate the AI model layer, following recent investments in SSI, Perplexity, and the acquisition of Hugging Face.
What happened
Nvidia is reportedly in talks to invest approximately $2.5 billion in Thinking Machines Lab, the AI startup founded by former OpenAI CTO Mira Murati. The company's new funding round could reach $5 billion to $6 billion, with a pre-money valuation of at least $40 billion. This follows a $2 billion seed round last July, which valued the company at $12 billion post-money.
Thinking Machines Lab launched its open-weight model Inkling and the Tinker customization platform in July, with annualized revenue already exceeding $100 million. However, a previous fundraising attempt at a $50 billion to $60 billion valuation failed, and three co-founders returned to OpenAI.
Why it matters
This investment is part of Nvidia's strategy to dominate the AI model layer, following recent investments in SSI, Perplexity, and the acquisition of Hugging Face. It underscores Nvidia's shift from a pure hardware supplier to a capital allocator in the AI industry.
For Thinking Machines Lab, securing large-scale compute is critical for its enterprise customization services. The company's open-weight models and customization platform position it as a competitor to closed-model providers like OpenAI and Anthropic.
Key facts
- Nvidia is reportedly investing $2.5 billion in Thinking Machines Lab.
- The potential deal could value the company at over $40 billion.
- Thinking Machines Lab completed a $2 billion seed round last July at a $12 billion post-money valuation.
- The company launched its open-weight model Inkling and the Tinker customization platform in July.
- Annualized revenue for Thinking Machines Lab has already exceeded $100 million.
- Nvidia has recently invested in SSI, Perplexity, and acquired Hugging Face.
- Thinking Machines Lab is the only U.S.-based lab releasing frontier-grade open-weight models.
- The company has faced governance concerns and talent attrition, with three co-founders returning to OpenAI.
Context
Nvidia's investment in Thinking Machines Lab is part of a broader trend of AI startups focusing on open-weight models and enterprise customization services. This shift is driven by the need for more flexible and customizable AI solutions that can be tailored to specific enterprise needs.
The competition in the AI model layer is heating up, with major players like OpenAI, Anthropic, and now Thinking Machines Lab vying for dominance. The ability to secure large-scale compute and talent will be critical factors in determining success in this rapidly evolving landscape.
