Google DeepMind’s London AI drug spinout eyes $50bn valuation
London-based AI drug discovery firm, Isomorphic Labs, is reportedly seeking a valuation of up to $50bn (£37bn) in fresh funding talks, just five months after raising $2.1bn from investors. The Google DeepMind spinout, led by Nobel Prize-winning scientist Sir Demis Hassabis, is in early discussions to raise new capital at a valuation of at least [...]
London-based AI startup Isomorphic Labs, a spinoff from Google DeepMind, is negotiating a potential valuation of up to $50 billion in fresh funding talks, just five months after securing $2.1 billion from investors. Led by Nobel laureate Sir Demis Hassabis, the company is restructuring its discussions to raise capital with a minimum valuation of $40 billion.
A new valuation could exceed $50 billion, although no agreement has been reached yet. This sharp increase in valuation reflects the surge in investments in AI-driven drug development businesses.
Founded in London in 2021, Isomorphic Labs leverages AI to design potential medications, capitalizing on DeepMind’s AlphaFold technology, which predicts protein structures. The firm is developing treatments for cancer and immune disorders, collaborating with major pharmaceutical companies like Eli Lilly, Novartis, and Johnson & Johnson. Their technology aims to shorten drug discovery timelines and costs by predicting molecular interactions with biological targets before laboratory testing.
Despite receiving substantial funding, Isomorphic has yet to conduct human trials for its drug candidates. The company aims to commence its first clinical trials by the end of 2026, a crucial milestone in validating its AI technology's potential to create viable medicines. The latest funding discussions stem from a $2.1 billion Series B round in May, backed by investors including Alphabet, Thrive Capital, and the UK Sovereign AI Fund.
Isomorphic, with Alphabet as its majority owner, recently expanded its focus on AI applications in biological research, joining Google DeepMind and Meta in a $300 million initiative to develop AI models predicting human cell behavior. This aligns with a broader $1.8 billion effort to create digital "virtual cells" for drug testing.
For the UK, Isomorphic's rapid growth underscores the growing prominence of AI businesses in London's tech landscape, which has attracted significant foreign investment, with UK AI firms raising £8.3 billion in 2025.
Written by urgent.news from City AM's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
