Leonis Capital Secures $25M for AI Talent Fund, Led by Ex-OpenAI Researcher

Leonis Capital, a venture capital firm co-headed by an ex-OpenAI researcher, has raised $25 million to back emerging AI talent. The fund is backed by institutional investors and executives from companies like Nvidia and Anthropic. Leonis uses in-house software to track GitHub contributions and academic papers to spot hidden gems, and has already achieved a 200-times gain on paper with its biggest hit, MaintainX.

Leonis Capital, a venture capital firm co-headed by Jenny Xiao, an early employee and researcher at OpenAI, has secured $25 million for a new fund aimed at uncovering the next OpenAI. The fund is backed by institutional investors and a mix of researchers and executives from companies like Nvidia Corp, OpenAI, and Anthropic [1].

The firm, founded in 2021, has already deployed its first $10 million fund across AI-native startups, including MaintainX and Motion. Co-head Jay Zhao, a veteran venture investor, believes there is a gap in the market for early-stage founders not well served by larger funds that require more proof points and revenue. Leonis is using in-house software to track GitHub contributions and academic papers from up-and-coming startups to spot hidden gems [1].

Leonis's early bets have been successful, with MaintainX, a manufacturing startup, achieving a 200-times gain on paper. The firm's team includes eight research fellows with doctorate degrees from prestigious institutions like Harvard, Stanford, and the Massachusetts Institute of Technology [1].

The $25 million raise comes amidst a strong run for AI startups in the venture capital market. In Q2 2025, AI-focused companies collectively raised over $1 billion, accounting for more than a third of the quarter’s $91 billion global VC total [2]. This trend highlights the growing investor conviction in AI's potential to drive innovation across various sectors, including materials science.

The success of Leonis and other venture firms like Andreessen Horowitz (a16z) in backing AI startups underscores the premium placed on founders with cutting-edge AI expertise. For instance, a16z is set to lead a $200 million financing round for Periodic Labs, an AI materials science company valued at $1 billion pre-funding. Founded by Liam Fedus, a former vice president of research at OpenAI, and Ekin Dogus Cubuk, previously a research scientist at Google DeepMind, Periodic Labs aims to leverage AI to analyze and design new materials [2].

The rise of AI startups, particularly those led by ex-OpenAI employees, reflects the intense competition for AI talent and the willingness of venture firms to fund science-focused applications at early stages. As AI continues to dominate venture funding, firms like Leonis and a16z are positioning themselves at the forefront of this rapidly evolving market.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/-ex-openai-researcher-raises-fund-to-back-emerging-talent
[2] https://techfundingnews.com/ex-openai-execs-raise-200m-at-1b-valuation-for-ai-materials-science-startup-backed-by-a16z/