Thinking Machines Lab Faces Staff Departures Amid Strategic and Funding Challenges
January 16, 2026
Finance

Thinking Machines Lab Faces Staff Departures Amid Strategic and Funding Challenges

Key personnel reportedly exploring return to OpenAI following internal upheavals and company direction uncertainties

Summary

Thinking Machines Lab, an AI startup founded by former OpenAI CTO Mira Murati less than a year ago, is experiencing internal instability marked by employee discussions about leaving the company. Several staff members are reportedly considering rejoining former OpenAI executives who have recently returned to their original roles. This potential wave of resignations follows recent leadership changes and ongoing difficulties in defining a sustainable business strategy, compounded by struggles to secure extended funding despite a previous $2 billion seed round.

Key Points

Thinking Machines Lab employees are reportedly in talks to leave and rejoin former OpenAI executives who have recently returned to OpenAI.
Founding members Barrett Zoph, Luke Metz, and Sam Schoenholz have rejoined OpenAI, prompting internal discussions among Thinking Machines staff.
The firing of Barrett Zoph earlier in the week prompted tensions and led to some employee resignations following an all-hands meeting addressing his departure.
Despite raising $2 billion in seed funding, Thinking Machines Lab has struggled to secure further investment and develop a clear business and product strategy, with only one product, Tinker, available.

Thinking Machines Lab, an AI startup launched nearly a year ago by former OpenAI CTO Mira Murati, is currently encountering significant internal challenges that could reshape its team and strategic trajectory. According to reports, multiple employees are engaged in conversations about departing the company to reunite with former OpenAI colleagues who have recently resumed roles at their previous organization.

These developments were highlighted on Thursday when prominent technology journalist Alex Heath disclosed on the social platform X that a growing number of Thinking Machines employees are exploring opportunities to join the trio of founding members who have just rejoined OpenAI. The returning founders include Barrett Zoph, Luke Metz, and Sam Schoenholz. However, Heath emphasized that the negotiations remain active and the exact number of staff considering leaving has not been confirmed.

The potential upheaval within Thinking Machines appears to coincide closely with internal disruptions involving leadership changes. Barrett Zoph was reportedly dismissed from his position earlier in the week, an event that has seemingly precipitated tensions throughout the company. Following an intense all-hands meeting convened to address Zoph's firing, several sources indicated that a subset of employees opted to resign. These departures underscore apparent unrest among team members amid ongoing organizational uncertainties.

Since its inception, Thinking Machines Lab has struggled to articulate a clearly defined business model and product roadmap. The startup's sole commercial offering to date is Tinker, an application programming interface (API) designed for fine-tuning open-source artificial intelligence models. Notably, the company has yet to develop a major foundational AI model, a factor that may contribute to uncertainty about its strategic direction and market positioning.

Despite successfully raising an impressive $2 billion seed funding round last year, Thinking Machines Lab has encountered difficulties securing subsequent financial backing. The company’s lofty valuation aspirations, with ambitions to escalate from $10 billion to $50 billion, have added pressure to demonstrate tangible progress and scalability. Industry observations suggest that this valuation gap coupled with operational challenges may be influencing its ability to attract further investment.

Efforts to obtain formal statements from Thinking Machines Lab and OpenAI regarding these internal developments were unsuccessful, as both entities did not immediately respond to requests for comment.

These recent events at Thinking Machines Lab indicate a period of transition that could significantly affect the startup's future prospects. The combination of leadership turnover, employee considerations to exit, and funding accomplishments that have yet to translate into sustained growth paint a complex picture for this emerging AI enterprise.

Risks
  • Ongoing employee departures could disrupt company operations and delay product development.
  • Failure to define and execute a sustainable business and product strategy may hinder the company’s growth and valuation targets.
  • The challenge in securing further funding beyond the initial $2 billion seed round could limit resources for research and expansion.
  • Internal leadership instability, marked by the firing of key personnel, may impact organizational morale and strategic continuity.
Disclosure
Education only / not financial advice
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