Joshua Meier found his way onto Zavain Dar’s list when he was still a senior at Harvard University.
At a New York networking event for the tech company Hugging Face, Meier engaged in what can only be described as small talk for a select group of biotechies: a conversation about building DNA-encoded libraries to represent molecules in latent space with SMILES strings, Dar recalled. Meier left Dar, then a partner at Lux Capital, with an impression.
“He jumped off the page in a room full of hardcore ML devs, before any of this stuff was in vogue,” Dar said in an interview.
Dar added Meier to a running list of promising talent whom he saw as “future entrepreneurs.” And by 2024, Dar was running his own VC firm, Dimension Capital, and Meier had just left his role as Absci’s chief AI officer to launch a startup. Dar wrote a $400,000 check before the new company had a name or a fully fleshed-out idea of what it would do.
Less than two years in, Meier, 29, is one of four young and ambitious co-founders of Chai Discovery, an AI biotech startup. In June, they
debuted their Chai-2 suite of models
, producing
de novo
proteins with surprisingly high success rates. Work is underway on Chai-3.
Since then, Chai has reeled in more than Dar’s first check. The startup closed a $30 million seed round last year, which included OpenAI and Thrive Capital, and
a $70 million Series A round
this year, led by Menlo Ventures. The latest raise valued Chai at $550 million, according to a source familiar with the matter.
Chai is the latest in a long line of ventures reflecting Silicon Valley’s increasing influence on drug discovery and its bet that AI will reverse biopharma’s high frequency of clinical failure and low rates of R&D productivity.
“We want to make biology look more like engineering than it looks like science,” Meier said in an interview. “There’s no reason to believe the capabilities should plateau here. I think they’re only going to keep getting better.”
Chai-2 is an early proof point. Mikael Dolsten, the recently retired chief scientific officer of Pfizer, said he was blown away by the model’s results. He joined the company’s board, believing Chai-2 will soon be part of every biopharma’s R&D toolkit, and the company’s research can unlock new functions for antibodies.
Chai is built more like a software startup than a biotech. With about 12 employees today, it doesn’t have its own laboratory or racks of computing chips. They occupy just 5,000 square feet in the San Francisco Bay Area. The company is not yet ready to discuss its business model or whether it will build its own pipeline.
It’s a radically different approach to AI in biotech, compared with the hiring sprees and megaround raises of rivals like
Xaira Therapeutics
,
Generate:Biomedicines
and
Isomorphic Labs
.
“I’m generally skeptical of large amalgamations of capital with scatterplots of big egos put into singular offices together and asked to figure it out,” Dar said. “I don’t think that’s a good way for efficient value creation, and value capture in any kind of entrepreneurial ecosystem.”
Chai believes its small team will outcompete larger groups. They’re moving at what Dar called a “full-speed sprint,” as shown by releasing Chai-2 less than a year after Chai-1.
That places a premium on the talent they bring in. Co-founders include Matthew McPartlon, 31, formerly at VantAI and one of the first builders of deep learning models in protein design; and Jacques Boitreaud, 27, previously a machine learning lead at the French biotech Aqemia. Chai has recruited some leading AI bio researchers, including
Zhuoran Qiao
, who developed several of Iambic Therapeutics’ top AI models, and Nathan Rollins, previously a machine learning scientist at Seismic Therapeutic.
Chai’s holy grail is zero-shot drug candidates, or AI-generated molecules that are already optimized and could be ready for human testing. Co-founder and president Jack Dent said he believes achieving that is “a lot sooner” than five years out.
For what’s next, Dar said he sees a long-term future for AI in predicting more drug properties and generating more types of drugs beyond protein-based therapeutics.
“Right now, it’s high-affinity binders. Tomorrow, it’s PK/PD and ADME, all done
in silico
,” Dar said, referencing a drug’s characteristics of pharmacokinetics, pharmacodynamics, absorption, distribution, metabolism, and excretion. “And then, the expansion across modalities. Today, it’s minibinders and antibodies. Tomorrow, it’s multispecifics and the next day it’s macrocycles and glues.”