Alphabet spinout Isomorphic seeks $40B valuation

Isomorphic Labs, an artificial intelligence drug discovery startup spun out of Alphabet's Google DeepMind, is in early talks to raise new funding at a valuation of at least $40 billion, according to people familiar with the matter reported by Bloomberg on October 8, 2026.

The financing round could value the London-based company as high as $50 billion. The talks have not concluded and terms could still change. Isomorphic Labs did not respond to requests for comment.

The discussions follow a $2.1 billion Series B round raised five months earlier. At that time, CEO Demis Hassabis said Alphabet provided a large part of the capital, though he declined to disclose Alphabet's exact stake or the startup's valuation. Hassabis, who shifted from head of DeepMind to chairman and became Alphabet's chief scientist in August, continues to lead Isomorphic as CEO.

Spun out in 2021 to commercialize the AlphaFold protein-folding model, Isomorphic competes with rivals including OpenAI in applying AI to medicine. The startup has signed partnerships with pharmaceutical giants Eli Lilly and Novartis, focusing on cancer and immune disorders while also developing its own drugs in house.