In March, M12, Microsoft’s Venture Fund, and Spark Ventures co-led the seed funding round for SynthLabs, a startup that’s developing leading technology for a fully auditable, transparent and robust AI alignment platform.
As Michael Stewart, Managing Partner at M12, put it in a post announcing the news, “SynthLabs is poised to create AI that is not only more efficient but also aligns with human values and preferences by incorporating RLHF into the learning process using RLAIF and other optimization mechanisms.”
In this edition of Founders Feature, we connected with Nathan Lile, Co-Founder and CEO of SynthLabs, to learn more about his philosophies as a founder and a leader, the characteristics of a strong startup team, and SynthLabs’ ambitious goals for the world of open source AI. Here’s what he shared with us:
Was there a particular moment or event that made you decide to take the entrepreneurial leap?
Nathan: Growing up in a small town in the mountains of North Carolina, stories of Silicon Valley innovation were a window to a world far beyond Appalachian horizons. There wasn’t a single “aha” moment that led me down the entrepreneurial path. Instead, it was a gradual build-up fueled by an inner drive to be part of the tech world I’d read about. Moving to California was certainly a big next step toward making those ambitions real.
Through Louis’s and my work at EleutherAI, the path forward became increasingly clear. Starting SynthLabs felt like a natural evolution—a dedicated vehicle to apply and integrate the technology we’d developed, focusing particularly on solving the last mile of applied problems. In close partnership with EleutherAI, we continue advancing shared infrastructure and collaborating on open science research, building on this strong foundation to tackle the challenges of bringing innovative solutions into production. SynthLabs isn’t just a business; it’s our way of expanding on the impactful work we began at EleutherAI, taking its significant contributions to cutting-edge research and driving them toward real-world applications.
How do you handle failure or setbacks?
Nathan: At SynthLabs, we are first and foremost a research lab, and the scientific process is at the heart of everything we do. When it comes to failure or setbacks, we see them as natural and essential steps of the process. In research, setbacks aren’t roadblocks but rather data points that help us refine our methods and push forward with better solutions. Our work culture embraces this mindset, viewing challenges as opportunities to learn and improve.
Personally, I’ve developed a resilience to failure—it’s not something that slows me down, but rather pushes me to uphold high standards and keep moving forward. I really believe that some of the biggest breakthroughs come from unexpected challenges, and that mindset helps drive everything we do.
How did you go about building your team?
Nathan: The key is finding people who not only have the right skills but also share our passion and core values. We want a group of individuals who believe in open science and are excited about the mission we are pursuing.
Early on, a lot of it came down to leveraging our network—bringing in former colleagues and industry peers who were just as energized about what we were doing. Excellence is non-negotiable; we look for people who are the best at what they do but also align with our belief in driving innovation through collaboration. Talent density and cultural fit were also priorities from the start, and that’s been crucial in building a team capable of pushing the boundaries in AI research.
For us, excellence wasn’t just about technical expertise—it extended to how well someone fit into the culture we were creating, where openness, curiosity, and shared drive were as important as skill.
What do you look for in a strategic partner?
Nathan: When looking for a strategic partner, I start by focusing on what type of long-term shared value we can create together. We focus on finding partners who can grow and evolve alongside SynthLabs, rather than just providing short-term gains. For example, our relationship with M12 and Microsoft is a great reflection of this approach—they bring more than just resources; they align with our long-term vision. It’s important that a partner not only shares our goals but also provides a platform that helps us scale our innovations and push forward in advancing AI research. For us, it’s about building a relationship where both sides can bring something unique to the table and thrive together.
What is your ultimate vision for SynthLabs?
Nathan: Our vision for SynthLabs centers on building the leading open science post-training research lab. The post-training/RL phase has always been complex and finicky, historically concentrating expertise within a handful of large AI labs. While this technical complexity was already challenging, its importance continues to grow rapidly, both in terms of computational demands and strategic significance. Post-training is where models become truly usable, steerable, and customized. Now, we’re seeing this phase unlock even more fundamental capabilities—the emergence of system 2 thinking and reasoning.
We’re driven by the belief that AI’s full potential should benefit as many people as possible, and that requires an open, collaborative approach to research. Every day, we strive to push the boundaries of AI while ensuring that the knowledge and tools we develop are available to all. It’s about pioneering breakthroughs that don’t just advance the field but do so in a way that brings lasting, widespread impact.
What advice would you give to someone who is just starting out in the startup world?
Nathan: For anyone at the beginning of their startup journey, my advice is simple but crucial: cultivate both conviction and ambition. You need a deep belief in your vision and an unyielding drive to bring it to life. Without these, the challenges of the startup journey can feel overwhelming. Conviction gives you direction, while ambition gives you the energy to keep going, even when things get tough. It’s not just about having a great idea—it’s about being passionate and relentless in making it happen.
Reflecting on my own journey with SynthLabs, I’ve learned that success comes from staying resilient, thinking strategically, and being committed to innovation. It’s a long, challenging path, but with the right mindset, it’s also incredibly rewarding.
