Top OpenAI, Google Brain researchers set off a $300M VC frenzy for their startup Periodic Labs

Periodic Labs, a groundbreaking startup founded by Liam Fedus, a prominent figure from OpenAI, and his former colleague Ekin Dogus Cubuk from Google Brain, has emerged from stealth mode with an impressive $300 million seed funding round. This substantial investment was spearheaded by Felicis Ventures and attracted numerous high-profile angel investors and venture capitalists. The inception of Periodic Labs traces back to a pivotal conversation between Fedus and Cubuk about seven months ago. Cubuk, renowned for his expertise in machine learning and material science at Google Brain, believed that advancements in the field of Generative AI had finally converged to revolutionize scientific discovery. "Recent innovations in large language models (LLMs), coupled with breakthroughs in experimental science, made it the perfect moment to establish this venture," Cubuk shared with TechCrunch. The duo identified three key developments that positioned them for success: the reliability of robotic arms for powder synthesis, advancements in machine learning simulations capable of modeling complex physical systems, and the enhanced reasoning abilities of LLMs. Fedus, who played an integral role in the creation of ChatGPT and managed OpenAI’s post-training team, emphasized that these elements could combine to enable AI-automated material science. In a notable achievement, Cubuk was part of a research team that published a groundbreaking paper in 2023, showcasing an automated lab that successfully created 41 novel compounds based on recipes generated by language models. This experience underscored the idea that even failed experiments could yield valuable data, which is crucial for training AI systems. "Integrating real-world experiments into the AI loop is the next frontier in scientific exploration," Fedus stated. After deliberating on their vision, Fedus made the decision to leave OpenAI, announcing his departure on social media with what appeared to be the organization’s support. Interestingly, OpenAI did not invest in Periodic Labs, as confirmed by the founders, who revealed that they did not require outside funding. The announcement ignited a frenzy among venture capitalists eager to invest in Periodic Labs. Fedus recounted how one investor even penned a heartfelt letter expressing their admiration for the startup. Among the first to engage was Peter Deng, a former OpenAI colleague turned investor at Felicis, who quickly arranged a meeting to discuss the potential of Periodic Labs. During a conversation in San Francisco, Fedus articulated the necessity of a fully-equipped lab for AI to conduct real scientific experimentation, prompting Deng to commit to investing on the spot. Despite initial logistical hurdles, including the fact that Periodic Labs was not yet incorporated, the startup soon established itself with a robust team of experts. With the $300 million funding secured, Fedus and Cubuk have begun assembling a talented workforce, including notable figures from AI and scientific backgrounds. The startup's initial focus is on discovering new superconducting materials, which could catalyze the next generation of energy-efficient technology. While the robotic components of their project are still in development, the team is actively engaging with experimental data and simulations. As they navigate the complexities of scientific discovery, Fedus and Cubuk remain optimistic about their mission, understanding that success in this field is often unpredictable. Their venture exemplifies a bold approach to harnessing AI in the pursuit of groundbreaking scientific advancements, a sentiment echoed by leaders in the industry. The enthusiasm surrounding Periodic Labs has attracted attention from notable investors, including Andreessen Horowitz, NVIDIA’s NVentures, and numerous angel backers, positioning the startup as a significant player in the intersection of AI and scientific research.