Chai Discovery, a biotechnology startup supported by OpenAI, revealed a $130 million Series B funding round at a valuation of $1.3 billion on Monday.

The funding was spearheaded by General Catalyst and Oak HC/FT, according to the company. Additional investors include Menlo Ventures, OpenAI, Dimension, Thrive Capital, Neo, Yosemite venture fund, Lachy Groom, SV Angel, along with new backers Glade Brook and Emerson Collective. The total funding for the firm now exceeds $225 million.

The company is part of an expanding sector that views AI as a quicker pathway to drug development. In August, Menlo Ventures disclosed it was leading Chai’s $70 million Series A round. The investor characterized Chai as a startup creating foundational models specifically designed for drug discovery, aiming to predict interactions between biochemical compounds for potential reprogramming into cures.

Chai aims to “develop the ‘computer-aided design suite’ for molecules.” Last year, the startup introduced the Chai 1 AI model and has now launched Chai 2, its newest model. The company states that Chai 2 is showing marked enhancements in success rates for de novo antibody design, which refers to the creation of custom antibodies from the ground up, rather than altering existing ones.

“Our newest models are capable of designing molecules possessing desirable characteristics typical of actual drugs and addressing complex targets that have previously been unattainable,” Josh Meier, co-founder and CEO of Chai, stated in a prepared remark.

Previously, Meier, who specializes in machine learning, was involved in research and engineering at Facebook and, before that, worked for OpenAI, as per his LinkedIn profile. Chai Discovery was established in 2024, the profile indicates.