Chai Discovery, a biotech startup backed by OpenAI, announced a $130 million Series B funding round at a $1.3 billion valuation on Monday. The round was led by General Catalyst and Oak HC/FT, the company confirmed in its statement.
In addition, existing and new investors, including Menlo Ventures, OpenAI, Dimension, Thrive Capital, Neo, Yosemite Venture Fund, Lachy Groom, SV Angel, Glade Brook, and Emerson Collective, participated in the raise. As a result, Chai Discovery’s total funding has now crossed $225 million.
Notably, Chai operates within a rapidly expanding biotech segment that leverages artificial intelligence to accelerate drug discovery timelines. Earlier, in August, Menlo Ventures led the company’s $70 million Series A round and highlighted Chai’s focus on building foundation models purpose-built for drug discovery. Specifically, the startup develops AI systems that predict interactions between biochemical molecules, enabling researchers to reprogram them for potential cures.
Moreover, Chai has articulated a clear long-term vision to “build the ‘computer-aided design suite’ for molecules.” In line with this ambition, the company unveiled its first AI model, Chai 1, last year. It has since introduced Chai 2, its latest and more advanced model. According to the company, Chai 2 delivers significantly higher success rates than existing approaches for de novo antibody design, which involves creating entirely new antibodies rather than modifying existing ones.
“Our latest models can design molecules that have properties we’d want from actual drugs and tackle challenging targets that have been out of reach,” Joshua Meier, Chai’s co-founder and CEO, said in a prepared statement.
Meanwhile, Meier brings a strong technical background to the venture. He previously worked in research and engineering roles at Facebook and earlier contributed to OpenAI, according to his LinkedIn profile. The company profile further notes that Chai Discovery was founded in 2024, positioning it as a relatively young but fast-scaling player in the AI-driven biotech space.
Chai Discovery’s latest funding round underscores growing investor confidence in AI-first approaches to drug development. By advancing foundation models for molecular design and antibody discovery, the company continues to strengthen its position as a category-defining biotech startup at the intersection of artificial intelligence and life sciences.
