What happened
Venture firm Accel is reportedly in discussions to lead a $1 billion funding round for Thinking Machines, a high-profile startup, according to the source.
The reported round would value Thinking Machines at $40 billion.
The startup's annual revenue run rate is currently over $100 million, per the report.
Why it matters
A $1 billion round at a $40 billion valuation would mark a significant milestone for Thinking Machines, underscoring investor confidence despite the company's relatively modest revenue run rate.
The reported valuation implies a high multiple on current revenue, indicating that the market is betting on substantial future growth.
Key facts
Accel is reportedly in talks to lead a $1B round for Thinking Machines.
The round would value Thinking Machines at $40B.
Thinking Machines' annual revenue run rate is over $100M.
What to watch next
Whether the reported talks conclude and result in a formal funding announcement, and if any other investors join the round.
How the new capital is deployed to accelerate growth and justify the reported $40B valuation.