Periodic Labs, a newly launched AI-powered materials science company, has raised $200 million in funding at a $1 billion pre-money valuation. The round is led by Andreessen Horowitz (a16z), with participation from OpenAI and other undisclosed investors.
Founded in 2025 by Liam Fedus, former VP of research at OpenAI and key architect of ChatGPT, and Ekin Dogus Cubuk, ex–Google DeepMind research scientist, Periodic Labs is building AI models that simulate and predict material properties faster and more accurately than traditional methods — potentially cutting years off the R&D process.
Strategic shift from OpenAI to a16z
The company initially considered having OpenAI lead the round but opted for a16z’s broader strategic network. OpenAI will still invest and may collaborate on future projects.
The startup’s tools are designed to accelerate innovation in energy storage, semiconductors, electronics, and construction materials, addressing industries where material breakthroughs can have billion-dollar impacts.
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Riding the AI startup wave
The funding reflects the “OpenAI alumni effect” sweeping the venture world, with ex-OpenAI leaders launching billion-dollar startups at an unprecedented pace. Collectively, former OpenAI employees have raised $42B+ for new ventures, with notable examples including Anthropic and Thinking Machines Lab.
AI remains the hottest VC category — in Q2 2025, AI companies secured over $1B in funding, accounting for more than a third of all global VC dollars.
Accelerating materials innovation
By applying advanced machine learning to material design, Periodic Labs aims to reshape industrial supply chains and speed up commercialization cycles. Potential applications range from clean energy technologies to next-generation chips.
“We’re combining cutting-edge AI research with one of the world’s biggest untapped opportunities — material innovation,” said Fedus. “This funding gives us the resources and partners to scale quickly and deliver breakthroughs with real-world impact.”
