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· Posted on
July 18, 2025

Thinking Machines becomes the world’s most expensive idea after raising $2 billion USD without a product or a dollar in revenue

AI startup Thinking Machines Lab, has just announced a $2 billion USD capital raise at a $12 billion valuation USD.

What's the key learning?

  • Some companies sell products, and some companies, like Thinking Machine, have just sold an idea.
  • Thinking Machines Lab was able to secure a capital raise based on reputation.
  • But, we have yet to see if this huge investment can result into an actual product that would give the company (and its investors) its ROI.

‍👉 Background: Ever since ChatGPT hit the consumer-scene in November 2022, AI chatbots have become all the rage. In fact, AI made up 64% of US startup deal value in the first half of 2025.

👉 What happened: A new AI startup, that was founded in February this year, named Thinking Machines Lab, has just announced a $2 billion USD capital raise at a $12 billion valuation USD. The crazy part? It has no products… and no revenue... not a single chatbot to speak of… yet.

👉 What else: The capital was raised off the back of its potential as well as the talent in the team. It founded by former OpenAI exec Mira Murati. Almost two-thirds of Thinking Machines’ team is made up of former OpenAI employees. And in 2025, “I used to work at OpenAI” is the new “I went to Harvard”.

What's the key learning?

💡In traditional business, a company’s valuation reflects its earnings or assets. But in emerging tech like AI, talent has become a key part of the product. Venture Capitalists often take into account what the team could build, and how big the market for their eventual product could be.

💡Other AI labs formed by OpenAI alumni have a good track record.

  • Anthoropic, which was also founded by former OpenAI employees is currently in the process of raising capital at a $100 billion USD valuation.
  • Safe SuperIntelligence, also started by a former OpenAI co-founder, who closed a round in April this year at a $32 billion USD.

💡So the VCs are betting that if Thinking Machines captures even a small slice of the future AI market, the return will be massive.

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