Two former AI heavyweights from OpenAI and Google’s DeepMind have teamed up to launch Periodic Labs — and it’s already securing a massive $200 million from top investors. The startup’s mission? Use AI to discover breakthrough materials that could reshape industries.
Key Takeaways:
- Andreessen Horowitz to lead a $200M investment in Periodic Labs.
- Pre-investment valuation pegged at $1 billion.
- Co-founders are ex-OpenAI VP Liam Fedus and former DeepMind scientist Ekin Dogus Cubuk.
- Mission: Use AI to accelerate material discovery.
- OpenAI expected to participate despite stepping back as lead investor.
The race to lead the next wave of artificial intelligence innovation just got another billion-dollar contender. According to Bloomberg, venture capital giant Andreessen Horowitz is set to pour $200 million into Periodic Labs, a months-old AI startup founded by veterans of OpenAI and Google’s DeepMind.
The deal reportedly values Periodic Labs at a staggering $1 billion before the funding even lands — a rare feat for such a young company.
From OpenAI’s ChatGPT to Material Science
At the helm is Liam Fedus, formerly OpenAI’s vice president of research and one of the key architects behind ChatGPT. His co-founder, Ekin Dogus Cubuk, comes from Google’s DeepMind AI division, where he worked on advanced research projects.
Their vision for Periodic Labs is ambitious: use AI to study and discover new materials that could transform sectors from clean energy to manufacturing. This isn’t just about faster algorithms — it’s about accelerating scientific breakthroughs that have traditionally taken decades.
When Fedus left OpenAI in March, he hinted at this new direction, calling AI-driven science “one of the most strategically important areas” for the field. He also suggested OpenAI would “invest in and partner” with Periodic Labs — and reports indicate OpenAI is still likely to join the funding round, just not as the lead investor.
Why Andreessen Horowitz Took the Lead
Sources told Bloomberg that while OpenAI was initially in talks to lead the investment, Fedus and Cubuk decided Andreessen Horowitz could offer broader resources and strategic advantages. The Silicon Valley VC firm has been aggressively backing AI ventures, aiming to position itself at the center of the AI ecosystem’s next growth phase.
The Trend of OpenAI Alumni Striking Out
Fedus is far from alone in leaving OpenAI to start fresh ventures. Anthropic, Safe Superintelligence, and Thinking Machines Lab are all high-profile examples of ex-OpenAI leaders building billion-dollar companies. It’s a sign of how quickly the AI talent war is escalating — and how many see untapped opportunity outside OpenAI’s walls.
Wider AI Race Heats Up
This deal comes amid a broader scramble among tech giants to push AI into everyday life. Amazon and Walmart, for instance, are battling to develop “AI super agents” — smart digital assistants capable of autonomously managing shopping and supply chains. The stakes aren’t just about smarter software; they’re about reshaping consumer behavior and entire industries.
With $200 million in fresh backing and two powerhouse founders, Periodic Labs could become one of the most closely watched AI startups in the science-tech space.