Andreessen Horowitz Leads $200M Funding Round for Periodic Labs, Valued at $1B

Andreessen Horowitz (a16z) has taken the lead in a $200 million funding round for Periodic Labs, propelling the AI-driven materials science startup to a $1 billion valuation. The deal marks a pivot from initial discussions with OpenAI, which was originally slated to lead the round. Sources indicate Periodic Labs favored a16z for its strategic support, though OpenAI remains an investor and potential collaborator.

Periodic Labs was co-founded by Liam Fedus, a key architect behind ChatGPT during his tenure at OpenAI, and Ekin Dogus Cubuk, a former DeepMind researcher. The startup aims to leverage AI for materials discovery—a vision Fedus publicly championed earlier this year. His transition mirrors a broader exodus of OpenAI talent founding high-profile ventures, drawing comparisons to Silicon Valley's legendary 'PayPal mafia.'

The funding frenzy around AI veterans continues unabated. Former OpenAI employees alone have secured over $42 billion for their startups, with marquee names like Anthropic and Thinking Machines Lab achieving multibillion-dollar valuations. Investors are paying premium prices for what they perceive as generational talent in the AI Gold rush.