DeepMind spinout Isomorphic Labs nears $2b raise

Isomorphic Labs, a London-based AI drug discovery startup spun out of Google DeepMind in 2021, is in advanced talks to raise more than US$2 billion in a round led by Thrive Capital, according to a report.

Alphabet is also expected to participate in the round, which has not yet closed.

The company plans to use the funds to expand its AI drug design platform and support international growth.

Led by DeepMind CEO Demis Hassabis, Isomorphic Labs is part of a wave of companies using AI in drug research, and it has announced partnerships with Eli Lilly, Novartis, and Johnson & Johnson.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

A Nobel Prize and a US$600 million round set up this US$2 billion goal

In March 2025, Isomorphic Labs took in its first outside money through a US$600 million round led by Thrive Capital. GV, Alphabet’s venture capital arm, and Alphabet also joined 1.
The money was not necessary, though it would help hire research scientists, said Demis Hassabis, CEO 1.
Its credibility comes from AlphaFold, an AI system that predicts the 3D structure of proteins. Hassabis and DeepMind researcher John Jumper shared the 2024 Nobel Prize in Chemistry for related work 1.
Instead of building wet labs, meaning physical laboratories for biological experiments, it puts its effort into algorithms that pull more from existing biological data 2.
Deals with Eli Lilly and Novartis could bring in nearly US$3 billion in milestone payments 3.

Alphabet’s spinoff strategy reshapes tech bets and drug research

The planned raise fits Alphabet’s habit of spinning out research units so they can tap outside backers. Isomorphic Labs first did that in March 2025 1.
The business leans on computational drug design, while pharmaceutical partners handle lab work plus drug development 4.
That setup is pushing more of the industry toward a split model where Johnson & Johnson runs experiments and moves programs forward after discoveries from AI-first partners 4.
Its US$600 million round became a marker for AI biotech financing and may steer more investor money toward a small group of companies with platform-level validation 3.