Andreessen Horowitz (a16z) is reportedly in talks to spearhead a significant early-stage funding round for Thinking Machines Lab, the AI startup recently founded by former OpenAI CTO Mira Murati. The funding could value Thinking Machines Lab at a staggering $10 billion, making it one of the most valuable AI startups despite being in its early stages.

Thinking Machines Lab emerged from stealth mode in February 2025. The company is focused on creating safer, more reliable, and adaptable AI systems for a wide range of applications. Murati, who spent over six years at OpenAI and played a key role in developing ChatGPT and DALL-E, has recruited approximately 30 researchers and engineers to her new venture, with two-thirds of them coming from OpenAI. Other team members have experience at Meta and Mistral AI. Key advisors include Bob McGrew, OpenAI's former chief research officer, and Alec Radford, a lead researcher on OpenAI's models.

Thinking Machines Lab aims to bridge the gap between AI research and real-world applications. The company is structured as a public benefit corporation and is committed to open-source practices, transparent model development, and modular architectures. This approach aims to make AI more understandable, customizable, and collaborative. The company's website states its mission is to give everyone access to the knowledge and tools needed to make AI work for their specific needs.

If the funding round proceeds as reported, it could approach $2 billion. Sequoia Capital is also reportedly in discussions to participate. This investment would represent a major bet on Murati's vision and the potential of her team to create impactful AI technologies.

Andreessen Horowitz's interest in Thinking Machines Lab aligns with its broader investment strategy in the AI space. The firm has invested in several AI companies, including xAI, Mistral AI, and Safe Superintelligence. A16z's portfolio strategy shows their intention to build a diversified AI ecosystem that spans various AI safety and alignment philosophies.

The potential investment in Thinking Machines Lab highlights a broader trend in AI venture capital: the increasing value placed on talent and reputation. Murati's experience at OpenAI, where she helped develop some of the most influential AI models, has significantly reduced investor risk despite Thinking Machines Lab's lack of current revenue or product. Her ability to attract top-tier AI researchers and engineers further reinforces investor confidence. This trend is similar to the "OpenAI mafia" effect, where former employees of influential companies leverage their experience and networks to attract substantial investment.

The rapid pace at which these AI startups are reaching unicorn status underscores the intense competition for AI talent and the perceived transformative potential of AI. Some analysts believe that team credentials outweigh traditional metrics like revenue or product-market fit in the current environment.

However, the AI investment landscape is not without its challenges. Concerns exist about whether venture capital is providing actual returns outside of a few key players like OpenAI. Some reports suggest that the AI bubble may be showing signs of instability, with many startups having high valuations but uncertain paths to profitability. Despite these concerns, the potential investment by Andreessen Horowitz in Thinking Machines Lab signals continued strong interest in AI startups with experienced leadership and a clear vision for the future.