OpenAI-supported biotechnology company Chai Discovery secures $130 million in Series B funding, reaching a $1.3 billion valuation

Chai Discovery Secures $130 Million in Series B Funding, Reaching $1.3 Billion Valuation

Biotech startup Chai Discovery, which counts OpenAI among its supporters, has raised $130 million in a Series B funding round, bringing its valuation to $1.3 billion.

The latest investment was spearheaded by General Catalyst and Oak HC/FT. Additional backers include Menlo Ventures, OpenAI, Dimension, Thrive Capital, Neo, Yosemite venture fund, Lachy Groom, SV Angel, with new participation from Glade Brook and Emerson Collective. With this round, Chai Discovery’s cumulative funding now exceeds $225 million.

AI-Driven Drug Discovery on the Rise

Chai Discovery is part of a rapidly expanding sector that leverages artificial intelligence to accelerate the drug development process. Just last August, Menlo Ventures led the company’s $70 million Series A, highlighting Chai’s focus on developing foundational AI models for drug discovery. These models are designed to predict how biochemical molecules interact, enabling the creation of new treatments.

Innovative Molecular Design Tools

The company’s mission is to create a comprehensive “computer-aided design suite” for molecular engineering. In the previous year, Chai introduced its Chai 1 AI model and has since launched Chai 2, its most recent advancement. According to the company, Chai 2 delivers notable improvements in the success rate of designing entirely new antibodies, outperforming traditional approaches by generating custom molecules from the ground up.

“Our newest models are capable of designing molecules with the desired characteristics for real-world drugs, and can address difficult targets that were previously unattainable,” stated Josh Meier, Chai’s co-founder and CEO.

Leadership and Background

Josh Meier, who has a background in machine learning, previously held research and engineering roles at Facebook and OpenAI, as noted on his LinkedIn profile. Chai Discovery was established in 2024.