Miles Wang, a researcher at OpenAI whose work focuses on using artificial intelligence to accelerate scientific and biological discovery, is preparing to leave the company behind ChatGPT to launch his own startup dedicated to developing AI models for drug discovery. According to four individuals with knowledge of his plans, Wang is currently in discussions to raise approximately $200 million at a $2 billion valuation, with venture capital firm Lightspeed reportedly in talks to lead the funding round.
Several other OpenAI researchers are expected to join Wang at the new company, according to sources. However, the negotiations are still ongoing, the deal may not reach completion, and the terms could still change. Wang himself pushed back on the reported funding figures and the description of the company's focus, though he declined to provide corrected numbers or clarify what the startup will actually do. Lightspeed did not respond to a request for comment.
Targeting Drug Repurposing Through AI
The new startup is believed to be developing AI models designed to help find new therapeutic applications for existing drugs, as well as for compounds that previously failed in clinical trials, according to a couple of sources. This approach could offer a strategic advantage: identifying new uses for medications that have already received FDA approval can lead to a significantly faster path to revenue than developing entirely new drugs from scratch, since these medicines have already undergone safety testing.
A Surging Market for AI in Pharmaceuticals
The funding discussions surrounding Wang's venture reflect a broader wave of investor interest in applying artificial intelligence to achieve breakthroughs in the life sciences. The sector has seen a string of major deals in recent months.
On Tuesday, Chai Discovery, a startup founded roughly two years ago that builds AI models capable of predicting molecular interactions to identify potential new drugs, announced that it had raised $400 million at a $3.8 billion valuation. Chai Discovery's co-founder Josh Meier, like Wang, also spent time as a researcher at OpenAI before launching his own company.
Even larger sums have flowed to more established players. In May, Isomorphic Labs, a spinout from Google DeepMind that also develops AI models for drug discovery, raised $2.1 billion in a Series B funding round. These deals collectively highlight how venture capital is pouring into companies seeking to use machine learning to transform the traditionally slow, costly, and uncertain process of pharmaceutical development.