Biotech Startup Chai Discovery Secures $130 Million in Series B Funding

Chai Discovery, a biotech startup supported by OpenAI, has revealed a successful $130 million Series B funding round on Monday, valuing the company at $1.3 billion. The funding was spearheaded by General Catalyst and Oak HC/FT, with Menlo Ventures, OpenAI, Dimension, Thrive Capital, Neo, Yosemite venture fund, Lachy Groom, SV Angel, and new investors Glade Brook and Emerson Collective also participating. This brings the total funding raised by the firm to over $225 million.

Chai Discovery is part of a burgeoning sector that views AI as a swifter avenue for drug development. In August, Menlo Ventures led Chai's $70 million Series A round, emphasizing the startup's focus on constructing foundation models tailored for drug discovery, specifically to forecast interactions between biochemical molecules for potential cures. Chai aims to create a 'computer-aided design suite' for molecules, having previously introduced the Chai 1 AI model and now launching the Chai 2 model, which has demonstrated significant advancements in success rates for de novo antibody design.

Josh Meier, Chai's co-founder and CEO, highlighted that their latest models can design molecules with desired drug properties and address challenging targets that were previously unattainable. Meier, whose expertise lies in machine learning, previously held positions in research and engineering at Facebook and OpenAI. Chai Discovery was established in 2024, as per Meier's LinkedIn profile.