Thinking Machines Lab Reported Near $5 Billion Round at $40 Billion Valuation Amid Talent Turnover

Funding talks advance but not yet closed

Thinking Machines Lab, the AI startup founded by former OpenAI chief technology officer Mira Murati, is reportedly closing in on a $5 billion funding round at a $40 billion valuation, according to multiple people familiar with the matter cited by Business Insider and Flipit.money [1][2]. Flipit.money describes the figure as a pre-money valuation [2]. The round, said to be led by venture firm Accel, could close as soon as this week [2]. Business Insider reported that a representative for Thinking Machines Lab declined to comment and that Accel did not respond to a request for comment [1]; Flipit.money reported that both the startup and Accel declined to comment [2].

The reported terms would more than triple the startup's valuation from its last public round, which valued it at $10 billion just last year [1][2]. Flipit.money reported that The Information had previously reported in September that the company was exploring another raise after talks to secure funding at a $50 billion valuation fell apart last year [2].

Valuation jump from $10 billion to $40 billion

The jump from $10 billion to $40 billion in a single year underscores continued investor appetite for high-profile AI labs, as noted by Business Insider and Flipit.money [1][2]. Thinking Machines first drew attention for raising a $2 billion seed round before bringing a product to market [2]. Sources differ on when the company emerged from stealth: Flipit.money says 2023 [2], while Business Insider reported in November 2026 that it emerged "last year" [1].

Product progress: Tinker update

On Thursday, the company released an updated version of Tinker, its first tool, which is designed to make it easier for users to fine-tune large language models [1][2]. Thinking Machines stated that the new version shows gains in AI coding capabilities [1][2]. The company's website emphasizes a mission to make AI "more widely understood, customizable, and generally capable," with a focus on human-AI collaboration, multimodal systems, and publishing research openly [3].

Talent exodus continues

The funding news arrives alongside persistent turnover. Business Insider reported in May that roughly one-third of the founding team has departed, lured by compensation packages from rivals including Meta and OpenAI [1][2]. Named departures include Barret Zoph, Luke Metz, and Andrew Tulloch [1][2]. The startup has also attracted high-profile hires such as competitive programmer Neal Wu [1][2].

Investor appetite undimmed

Despite the talent losses, the reported term sheet suggests investors remain willing to place large bets on founding teams with direct experience building frontier models. Whether the capital translates into sustained product velocity or further consolidation of talent remains to be seen.