- Miles Wang is in talks to raise ~$200 million at a $2 billion pre-money valuation for an AI drug discovery startup, with Lightspeed Venture Partners in discussions to lead [1] - Wang joined OpenAI in 2024 after dropping out of Harvard and co-authored research on using AI to accelerate biological discovery [2] - The startup plans to use transformer architectures to identify new applications for existing drugs, including those that previously failed clinical trials [3] - Several other OpenAI researchers are expected to join Wang, continuing a pattern of talent departures from the company [1] - The AI drug discovery sector has attracted over $15 billion in venture capital since 2024, with competitors including Isomorphic Labs and Recursion Pharmaceuticals
[3] Miles Wang, an OpenAI researcher whose work focused on using AI to accelerate scientific and biological discovery, is in talks to leave the company and launch an AI drug discovery startup at a $2 billion valuation, according to a TechCrunch report published Monday [1]. Lightspeed Venture Partners is in discussions to lead the round, which would total approximately $200 million.
Wang, who joined OpenAI in 2024 after dropping out of Harvard's computer science program, has co-authored research papers evaluating how AI models can automate and accelerate scientific discovery [2]. Several other OpenAI researchers are expected to join the new venture, though the deal has not been finalized and details remain subject to change
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[1]Wang disputed the report's funding figures and description of the company but did not specify what details were incorrect [1]. The round, if completed at the reported terms, would represent one of the largest debut funding rounds in biotech history — far exceeding the typical $200 million to $500 million range for AI biotech launches
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[3]## The Startup The company plans to apply transformer architectures — the same technology underlying ChatGPT and other large language models — to biological data and molecular prediction [3]. Wang developed proprietary approaches to this work during his time at OpenAI, according to reporting from multiple outlets
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[3]Rather than pursuing de novo drug development, which typically costs roughly $2.6 billion and takes over a decade, the startup intends to focus on identifying new applications for existing drugs, including medicines that previously failed clinical trials [4]. Because these compounds have already undergone safety testing, the approach offers a significantly faster path to revenue than developing drugs from scratch
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[4]## The Investors Lightspeed Venture Partners, which closed over $9 billion in new funds in recent years, is in discussions to lead the round [1]. The firm has been actively investing across AI-driven healthcare and biotech, including a $175 million Series C for Alpha-9 Oncology in August 2025
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[5]The $2 billion pre-money valuation reflects both Wang's OpenAI pedigree and broader investor conviction that large language model techniques can transfer directly to protein modeling and molecular prediction [3]. The AI drug discovery sector has attracted more than $15 billion in venture capital since 2024
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[3]## Competitive Landscape Wang's startup enters an increasingly crowded field. Alphabet's Isomorphic Labs secured a $3 billion partnership with Eli Lilly, while Recursion Pharmaceuticals trades publicly with a market capitalization above $2 billion [3]. Other notable players include Insilico Medicine, valued at $1.2 billion, and Chai Discovery
[3]. [4]The wave of AI-native biotech companies reflects a bet that the same scaling laws driving improvements in language models can be applied to biological systems — compressing drug development timelines from a decade to as few as three years [3].
OpenAI Talent Exodus #
Wang's departure adds to a growing list of senior researchers leaving OpenAI to launch their own ventures. The most notable prior departure was a group of safety researchers who founded Anthropic, which has raised more than $7 billion [3]. Robotics specialists have also left to start autonomous systems companies.
The pattern underscores OpenAI's role as a talent incubator for the broader AI ecosystem, even as the company has faced scrutiny over researcher departures and its own transition from a nonprofit to a for-profit structure [3].
What's Next #
The funding discussions remain ongoing and the final terms are not yet set [1]. Wang has not publicly named the company or detailed its product roadmap. If the round closes at the reported valuation, it would immediately position the startup among the most valuable private AI biotech companies globally.
For Lightspeed, a deal at these terms would represent a significant bet on the convergence of frontier AI research and life sciences — a thesis that has attracted billions in capital but has yet to produce a blockbuster drug developed primarily through AI [3].
Companies mentioned #
Further sources #
[1] TechCrunch: OpenAI researcher Miles Wang in talks to launch AI drug discovery s… ↗
[[2] OpenReview: Miles Wang profile and research papers ↗](https://openreview.net/profile?id=~Miles_Wang1)
[[3] TechBuzz: OpenAI Researcher Miles Wang Eyes $2B AI Drug Discovery Startup ↗](https://www.techbuzz.ai/articles/openai-researcher-miles-wang-eyes-2b-ai-drug-discovery-startup)
[[4] NewsBytesApp: OpenAI researcher leaves to launch AI drug start-up ↗](https://www.newsbytesapp.com/news/science/openai-researcher-leaves-to-launch-ai-drug-start-up/story)
[[5] Venture Capital Journal: Lightspeed closes over $9bn in new funds ↗](https://www.venturecapitaljournal.com/lightspeed-closes-over-9bn-in-new-funds/)
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