OpenAI reclaims two co-founders from Mira Murati's Thinking Machines Lab in major talent coup

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Thinking Machines Lab, the AI startup founded by former OpenAI CTO Mira Murati, is losing two of its co-founders—Barret Zoph and Luke Metz—who are returning to OpenAI. The departures come amid allegations of unethical conduct and reveal deeper challenges facing new AI labs trying to compete with established players in Silicon Valley's increasingly fierce AI talent wars.

OpenAI Secures Major Win in AI Talent Wars

Thinking Machines Lab faces a significant setback as two of its co-founders rejoining OpenAI just months after the startup's launch. Barret Zoph, who served as CTO, and Luke Metz, both departed the company founded by former OpenAI executive Mira Murati to return to their previous employer

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. Fidji Simo, OpenAI's CEO of Applications, announced the personnel shakeup on X, stating that the move "has been in the works for several weeks" and that Sam Schoenholz, another Thinking Machines staffer, would also be joining them

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Source: ET

Source: ET

The timing raises eyebrows. Murati announced Zoph's departure on social media Wednesday, revealing that Soumith Chintala new CTO would take over the role. Chintala, the co-creator of PyTorch and a Vellore Institute of Technology alumnus, brings over a decade of AI contributions to the position

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. Just 58 minutes later, Simo's announcement confirmed the trio's return to OpenAI

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Allegations of Unethical Conduct Surface

The departures weren't entirely smooth. Reports emerged that Thinking Machines terminated Zoph over allegations of unethical conduct. Sources close to the company told WIRED that Zoph shared confidential company information with competitors

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. According to Simo's internal memo to OpenAI staff, Zoph informed Murati on Monday he was considering leaving and was fired two days later. However, Simo explicitly stated that OpenAI does not share Thinking Machines' concerns about Zoph

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Source: Gadgets 360

Source: Gadgets 360

Additional defections are reportedly underway. At least two more Thinking Machines researchers, Lia Guy and Ian O'Connell, are leaving, with Guy heading to OpenAI

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. This marks the second wave of co-founder departures for the startup—Andrew Tulloch left to join Meta in October

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Money and Compute Constraints Drive Exodus

Behind the departures lie deeper structural challenges facing new AI labs. Despite raising a record-breaking $2 billion seed round in July from Andreessen Horowitz, Nvidia, AMD, and others—valuing the company at $12 billion—Thinking Machines Lab struggles to match compensation packages offered by established players

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. A former OpenAI researcher told Fortune that departures "have more to do with money than otherwise," with some employees receiving "insane packages to return to OpenAI"

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Compute constraints and unclear product direction compound the problem. While Thinking Machines launched the Tinker API for fine-tuning large language models, questions remain about its long-term business model

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. Established labs like OpenAI, Anthropic, and Google DeepMind can offer high-six and seven-figure cash compensation packages, while Meta has reportedly dangled packages worth hundreds of millions or even billions

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Historical Context Adds Intrigue

The situation carries additional weight given the history between Murati and Sam Altman. The Wall Street Journal reported that Murati provided Slack screenshots used to expose Altman's alleged leadership issues during his brief 2023 ouster from OpenAI. She served as interim CEO before Altman's reinstatement

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Source: Digit

Source: Digit

Some observers speculate whether Simo's aggressive recruiting represents an opportunity to hobble a potential competitor's fundraising efforts—Bloomberg reported Thinking Machines is in discussions to raise additional funding at a $50 billion valuation

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The rapid exodus of co-founders from a startup less than a year old signals broader challenges for AI labs attempting to compete with incumbents. While Chinese startups like DeepSeek and Moonshot AI have built competitive models, they draw from different talent pools. For Silicon Valley's new wave of foundation model labs, the combination of compensation disparities, compute access, and the allure of near-term liquidity events at established companies creates a formidable retention challenge that seed funding alone cannot solve.

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