Thinking Machines, an artificial intelligence research company founded in early 2023 by Mira Murati, who previously served as Chief Technology Officer at OpenAI, is reportedly in talks to raise $1 billion in new funding. According to The Information, the company is seeking a valuation of at least $40 billion, though this would be lower than the $50 billion valuation it had reportedly aimed for in late 2023. Accel, an existing investor, is said to be leading the fundraising effort. The company’s current annual revenue, based on a “run rate” that estimates yearly earnings from current performance, exceeds $100 million. A $40 billion valuation at that revenue level would imply a very high revenue multiple — a metric that reflects how much investors are willing to pay for each dollar of revenue. This kind of valuation is typically seen in fast-growing tech startups, especially those with potential for significant market expansion. Accel and Thinking Machines have not yet commented on the reports. In July, Thinking Machines launched Inkling, a new open-weight model that allows users to adapt AI models to their own data through a platform called Tinker. The company charges users based on compute usage, which is a way to generate revenue without requiring upfront licensing fees. This model is part of a broader trend in AI development, where companies offer flexible access to their technologies for a range of applications. Thinking Machines previously raised $2 billion in a seed round that was one of the largest in startup history. That round valued the company at $12 billion and was led by venture capital firm Andreessen Horowitz, with participation from major tech investors like Nvidia and GV. The funding was largely driven by Murati’s background and the team of former OpenAI researchers who joined her. However, the company has experienced some high-profile departures, with co-founders Lilian Weng and Luke Metz returning to OpenAI.