Isomorphic Labs, Alphabet's spinout focused on AI-driven drug discovery, is in early talks over a new funding round at a valuation of at least $40 billion. Bloomberg reported this on October 8, 2026, citing sources. Bloomberg Law independently confirmed the report: the company is said to be raising new capital at a valuation of at least $40 billion, possibly up to $50 billion. According to the sources, the financing has not yet closed and terms may change during the negotiations.
Talk Details: Early Stage, Valuation Open
According to Bloomberg, the talks are currently at an early stage. Sources say the valuation is at least $40 billion, and some sources suggest the final valuation could reach $50 billion. It is emphasized that since the financing has not closed, deal terms and the valuation may change as negotiations continue.
Bloomberg Law also separately confirmed the report. The independent confirmation by both outlets increases its credibility. At the same time, no information has been disclosed about when the round will close, which investors will participate, or the exact amount to be raised. According to Bloomberg's sources, at the current stage the talks are far from a final agreement, and the parties continue to discuss the valuation. A reminder: so far neither Isomorphic Labs nor Alphabet has issued an official statement, and all available information is based on reports from Bloomberg and Bloomberg Law citing their sources.
This news comes five months after the large previous round, so the valuation in the new talks indicates growing investor interest in the company. However, the early stage of the process means the final outcome is not yet guaranteed — details may change before an official announcement.
Company History: From DeepMind's Legacy to an Independent Path
Isomorphic Labs is an Alphabet spinout focused on drug discovery using artificial intelligence. The company spun out of Google DeepMind, and its scientific foundation rests on DeepMind's AlphaFold work — predicting protein structures.
The company's stated goal is to bring AI-designed drug candidates to the clinical trial stage. In other words, AI models are meant to accelerate the path from discovering new drug compounds to testing them in humans. This approach aims to shorten the most expensive and longest stages of traditional pharmaceutical production.
Relying on DeepMind's scientific legacy and Alphabet's financial backing, Isomorphic Labs has become one of the most prominent players in the AI-biotechnology field. The company's work is seen as a striking example of the practical application of artificial intelligence in pharmaceuticals. Isomorphic Labs operates specifically in applying DeepMind's AlphaFold research to the practical process of drug discovery.
May Series B: $2.1 Billion
Around May 2026, Isomorphic Labs raised $2.1 billion in a Series B round led by Thrive Capital. The round was an important milestone in the company's history, aimed at developing its AI-based drug discovery platform.
The round included a number of major investors: Alphabet itself, its venture arms GV and CapitalG, as well as MGX, Temasek, and the United Kingdom's sovereign AI fund (UK Sovereign AI Fund). Such a broad investor lineup — including both corporate venture funds and state sovereign funds — shows growing interest from both private and public capital in AI-based biotechnologies.
The start of new talks five months after the $2.1 billion May round shows that investor interest in the company continues.
Why This News Matters
A potential $40 billion valuation would place Isomorphic Labs among the world's most valuable private biotechnology companies. Confirmation of the report by both Bloomberg and Bloomberg Law raises its significance — meaning two independent outlets backed the story citing their own circle of sources.
At the same time, it should be remembered: the talks are at an early stage, and the financing has not closed. The facts as they stand: the company is negotiating a new round, a valuation of at least $40 billion is under discussion, and some sources say it could reach $50 billion. Details may change before an official announcement — Bloomberg's sources emphasize exactly this. It is also worth noting that the May Series B round was led by Thrive Capital and included Alphabet, GV, CapitalG, MGX, Temasek, and the UK Sovereign AI Fund.
Prepared based on materials from Bloomberg and Bloomberg Law.
