OpenAI-backed biotech firm Chai Discovery raises $130M Series B at $1.3B valuation

Chai Discovery, a biotechnology startup supported by OpenAI, has successfully raised $130 million in its Series B funding round, achieving a valuation of $1.3 billion. This significant investment was spearheaded by General Catalyst and Oak HC/FT, with several other notable participants including Menlo Ventures, OpenAI, Dimension, Thrive Capital, Neo, Yosemite Venture Fund, Lachy Groom, SV Angel, along with new investors Glade Brook and Emerson Collective. With this latest funding, Chai Discovery's total financing has surpassed $225 million. The startup is part of an expanding sector that leverages artificial intelligence to accelerate drug development processes. In August, Menlo Ventures played a pivotal role in leading Chai’s $70 million Series A round, highlighting the company's focus on creating foundational models specifically designed for drug discovery. These models aim to predict interactions among biochemical molecules, facilitating the reprogramming of these interactions for therapeutic purposes. Chai Discovery has articulated its vision of establishing a comprehensive "computer-aided design suite" for molecular development. Last year, the company unveiled its initial AI model, Chai 1, and has since rolled out Chai 2, its latest iteration. According to the firm, Chai 2 demonstrates significant enhancements in success rates for de novo antibody design, enabling the creation of custom antibodies from scratch rather than modifying existing ones. Josh Meier, co-founder and CEO of Chai, emphasized the advancements made with their newest models, stating, "Our latest models can design molecules with desired properties for actual drugs and address complex targets that have previously eluded researchers." With a background in machine learning, Meier previously contributed his expertise at Facebook and OpenAI before co-founding Chai Discovery in 2024.