Chai Discovery, a biotech startup backed by OpenAI, has raised $130 million in a Series B funding round, valuing the company at $1.3 billion. The round was led by General Catalyst and Oak HC/FT, with participation from existing and new investors including Menlo Ventures, OpenAI, Dimension, Thrive Capital, Neo, Yosemite Venture Fund, Lachy Groom, SV Angel, and new additions Glade Brook and Emerson Collective. The company’s total funding now exceeds $225 million. Chai Discovery is part of a growing wave of AI-driven biotech firms aiming to accelerate drug discovery. The company is focused on developing foundation models specifically designed for molecular design, with the goal of predicting and reprogramming interactions between biochemical molecules to create potential cures. The company’s ambition is to build a “computer-aided design suite” for molecules, enabling scientists to design novel therapeutics with precision and speed. In 2024, Chai launched Chai 1, its first AI model, and has since introduced Chai 2, its latest iteration. According to the company, Chai 2 demonstrates marked improvements in success rates for de novo antibody design—creating entirely new antibodies from scratch rather than modifying existing ones—especially for complex and previously inaccessible biological targets. “Our latest models can design molecules with the desired drug-like properties and tackle challenges that have long been out of reach,” said Josh Meier, Chai’s co-founder and CEO, in a statement. Meier, who has a background in machine learning, previously worked in research and engineering roles at Facebook and OpenAI before founding Chai Discovery in 2024. The startup’s rapid progress reflects the increasing convergence of artificial intelligence and life sciences, with AI now seen as a transformative tool for overcoming longstanding bottlenecks in pharmaceutical development.