Ex-OpenAI Talent Sparks Billion-Dollar AI Startup Boom: Inside the Next Wave of Innovation

Two and a half years ago, Liam Fedus played a pivotal role in the creation of ChatGPT, igniting the global AI frenzy. Today, he's leading a new venture, Periodic Labs, aiming to revolutionize AI for material science with over $100 million in funding, backed by OpenAI itself, valuing the startup at approximately $1 billion. Fedus collaborates with Ekin Dogus Cubuk, a former Google DeepMind researcher, marking a significant leap in AI applications beyond traditional domains.

Meanwhile, another group of ex-OpenAI employees, including Rhythm Garg, Linden Li, and Yash Patil, has secured seed funding from Benchmark for a stealth startup focused on reinforcement learning, a technique that enhances AI decision-making through trial and error. This move underscores the growing trend of OpenAI alumni venturing into the startup ecosystem, drawing parallels to the influential "PayPal mafia."

The AI startup landscape is witnessing an unprecedented influx of talent and capital, with former OpenAI executives and staffers launching ventures across education, audio software, and advanced AI models. Notable among these is Thinking Machines Lab, founded by ex-OpenAI CTO Mira Murati, which is raising over $1 billion at a $10 billion valuation, with backing from Andreessen Horowitz. The startup boasts a team heavily populated by OpenAI veterans, signaling a strong continuity of expertise and vision.

Ilya Sutskever, OpenAI's former chief scientist, is another standout, having raised billions for a new AI research lab valued at over $30 billion. This positions his firm among the world's most valuable AI startups, trailing only behind giants like xAI Corp. and Anthropic, both founded by individuals with early OpenAI connections. OpenAI itself remains the pinnacle of AI valuation at $300 billion, a testament to its enduring influence and the vibrant ecosystem it has spawned.