Key Takeaways:
An OpenAI researcher whose work spans AI-driven scientific discovery is leaving to build a drug discovery startup already valued at $2 billion before its formal launch.
Miles Wang, a researcher at OpenAI focused on using artificial intelligence to accelerate biological and scientific discovery, is departing the ChatGPT maker to found a new company developing AI models for drug discovery, according to four people with knowledge of his plans. Several other OpenAI researchers are expected to join the venture.
Wang is in talks to raise about $200 million at a $2 billion valuation, two of the people said. Lightspeed is in discussions to lead the funding round, though the deal may not be final and details could change. Wang disputed the funding figures and description of the company but did not specify correct numbers.
The startup is expected to focus on AI models that identify new therapeutic uses for existing drugs and potentially those that previously failed clinical trials, according to a couple of sources. Repurposing FDA-approved drugs can generate revenue significantly faster than developing new compounds from scratch, as these medicines have already passed safety testing.
The funding discussions underscore investor appetite for applying AI to life sciences breakthroughs. Chai Discovery, a two-year-old startup building AI models that predict molecular interactions for drug identification, announced Tuesday it raised $400 million at a $3.8 billion valuation. Co-founder Josh Meier also previously worked as an OpenAI researcher. Separately, Isomorphic Labs, the Google DeepMind spinout developing AI models for drug discovery, raised a $2.1 billion Series B in May.
Wang joined OpenAI in 2024 after dropping out of Harvard, where he was pursuing a bachelor's degree in computer science. At OpenAI, he co-authored research papers evaluating how AI models can automate and accelerate scientific discovery. His departure adds to a growing list of high-profile exits from OpenAI as former employees launch ventures in AI-powered biotech and other specialized domains.
The AI drug discovery sector has attracted significant capital as advances in large language models and molecular simulation converge. Companies in the space aim to reduce the roughly $2.6 billion average cost of bringing a new drug to market and compress development timelines that typically span a decade or more. Publicly traded peers such as Recursion Pharmaceuticals, Schrodinger, and Absci could see positive sentiment spillover from the continued capital allocation into the space, though none of these companies have disclosed direct ties to Wang's venture.
This article is for informational purposes only and does not constitute investment advice.
