ℹ️ Quick Answer. Thinking Machines Lab, Mira Murati’s $12 billion AI startup, just fired its CTO Barret Zoph over an office relationship. He returned to OpenAI within days. Several other cofounders have also jumped ship. For everyday AI users, this shows even the biggest startups face the same workplace drama as any company.
📋 WHAT’S INSIDE
- What Happened at Thinking Machines Lab
- The Thinking Machines Lab Exodus
- Why This Matters for Everyday AI Users
- The $12 Billion Question
- What This Means for the AI Industry
- FAQ
- The Bottom Line
Thinking Machines Lab just became the most expensive soap opera in Silicon Valley. I’ve been watching AI startups for a while and I’ve never seen a $12 billion company fall apart this fast.
In this article, I’ll walk you through what actually happened and why it matters if you’re someone trying to figure out which AI tools to trust.
What Happened at Thinking Machines Lab
Mira Murati fired CTO Barret Zoph for lying about an office relationship, and within days he returned to OpenAI along with cofounder Luke Metz and several key researchers, unraveling a $12 billion startup backed by Andreessen Horowitz, Accel, Nvidia, and AMD.
Mira Murati left OpenAI in October 2024. She was the company’s CTO. During her time at OpenAI, she helped launch ChatGPT. Then she started Thinking Machines Lab with a team of former OpenAI researchers.
The startup raised $2 billion from Andreessen Horowitz, Accel, Nvidia, AMD, and Jane Street. That gave it a $12 billion valuation before shipping a single product.
Then everything went sideways.
Last week, Murati announced at an all hands meeting that she’d fired the company’s CTO, Barret Zoph. The reason? An office relationship with another employee he had recruited from OpenAI. According to TechCrunch, Murati told employees that Zoph lied about the relationship.
Within days, Zoph was back at OpenAI. So was cofounder Luke Metz. And several other key researchers.
The Thinking Machines Lab Exodus
Cofounders Samuel Schoenholz, Jesse Guy, and Daniel O’Connell all left, Andrew Tulloch departed for Meta, and OpenAI’s applications CEO Fidji Simo welcomed Zoph back with a pointed memo saying OpenAI “does not share these concerns.”
This wasn’t just one firing. It’s a wave of departures.
Fortune reports that cofounders Samuel Schoenholz, Jesse Guy, and Daniel O’Connell have all left. Andrew Tulloch departed late last year to join Meta.
OpenAI’s CEO of applications, Fidji Simo, sent a memo to staff welcoming Zoph back. Her message was pointed. “OpenAI does not share these concerns” about Zoph’s conduct.
That’s corporate speak for “thanks for the talent, Mira.”
Why This Matters for Everyday AI Users
When you pick an AI tool, you are betting on the team behind it, and a company losing its CTO and multiple cofounders in the same month signals instability that could affect product development and long-term support.
You might be thinking to yourself, why should I care about startup drama? Fair question.
When you pick an AI tool, you’re betting on the team behind it. Whether you use AI for writing, managing your calendar, or taking meeting notes, the company’s stability matters.
Thinking Machines Lab hasn’t released a product yet. But if you were waiting for their AI assistant, this news should make you pause. A company losing its CTO and multiple cofounders in the same month isn’t a good sign.
It also shows something I’ve noticed across the AI industry. The talent pool is surprisingly small. The same researchers keep bouncing between OpenAI, Anthropic, Google DeepMind, and now these startups. When you use ChatGPT or Claude, you’re often using tools built by people who’ve worked at multiple competing companies.
The $12 Billion Question
Thinking Machines Lab still has $2 billion in the bank and named PyTorch co-creator Soumith Chintala as new CTO, but Benzinga reports Zoph was also accused of sharing confidential information with rival firms.
Thinking Machines Lab still has $2 billion in the bank. That’s not nothing. And Murati has named Soumith Chintala as the new CTO. He cocreated PyTorch at Meta, so he’s qualified.
But this startup went from “OpenAI killer” to “workplace drama cautionary tale” in record time. Benzinga reports that Zoph was also accused of sharing confidential company information with rival firms. If true, that’s a much bigger problem than an office romance.
The AI race is so competitive right now that researchers seem willing to jump ship at the first sign of trouble. Or the first sign of a bigger paycheck.
What This Means for the AI Industry
The Thinking Machines Lab implosion reveals four truths about the AI industry: huge funding does not equal stability, OpenAI remains the talent gravity well, workplace policies matter at any valuation, and the same small group of researchers keeps rotating between every major AI company.
A few things stand out from this whole mess.
- Huge funding doesn’t equal stability. $12 billion valuation means nothing if your team walks out.
- OpenAI is still the gravity well. Even people who leave tend to come back.
- Workplace policies matter. An office relationship brought down a CTO at a $12 billion company.
- The talent war is real. Every AI company is fighting for the same small group of researchers.
For anyone building with AI or choosing AI tools, the lesson is simple. Pay attention to who’s actually building the product. Logos and funding rounds are less important than whether the team will still be there next year.
FAQ
What is Thinking Machines Lab
Thinking Machines Lab is an AI startup founded by Mira Murati, the former CTO of OpenAI. The company raised $2 billion at a $12 billion valuation but hasn’t released a product yet.
Why did Thinking Machines Lab fire its CTO
Barret Zoph was fired after company leaders confronted him about an office relationship with an employee he had recruited. Murati told staff he lied about the relationship.
Should I wait for Thinking Machines Lab products
Given the recent departures, I’d focus on tools that exist now from stable companies. Check out our Start Here page for AI tools you can actually use today.
Who is the new CTO of Thinking Machines Lab
Soumith Chintala, who cocreated PyTorch at Meta, has been named as the new CTO.
The Bottom Line
Thinking Machines Lab raised more money in one round than most startups see in their entire existence and it still couldn’t avoid basic workplace drama. That $12 billion valuation is looking shakier by the day.
For everyday AI users, this is a reminder that the industry is still chaotic. The companies and tools that dominate today might not exist tomorrow. Pick tools based on what they can do for you right now, not on hype about what might come later.
Related reading. Anthropic Acquires Bun and What Claude Code’s $1 Billion Milestone Means for You
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