Synopsis
Alphabet's AI drug discovery firm, Isomorphic Labs, is reportedly close to securing over $2 billion in new funding, led by Thrive Capital. This significant investment aims to bolster its drug design engine and fuel global expansion, underscoring Alphabet's strategy of commercializing its advanced AI ventures.Thrive Capital, the venture firm that led Isomorphic Labs’ first funding round last year, is set to lead the new financing, said the people, who spoke on condition of anonymity as the information is not public. Alphabet is also participating, one person said, though the round is not yet closed.
Isomorphic Labs is one of a growing number of businesses attempting to apply advances in AI to speed up drug discoveries and cut the costs of such work, despite many failures from Silicon Valley to expand into health and life sciences. Google rival OpenAI, also backed by Thrive, recently introduced a new AI model meant to help accelerate drug discovery.
Thrive and Isomorphic Labs declined to comment. Google did not respond to a request for comment.
The additional funding would mark another step in Alphabet’s longtime plan to turn its futuristic bets into standalone businesses. Waymo, Alphabet’s autonomous driving unit, raised $16 billion at a $126 billion valuation earlier this year.
Alphabet has a number of high-profile startup investments in the AI space, beyond Google’s sister companies such as Waymo and Isomorphic. The company is also a major investor in SpaceX and Anthropic PBC. The success of these investments has boosted Alphabet’s profits in recent years.
Isomorphic Labs plans to use the new capital for its drug design engine, as well as to expand the business globally, one of the people said.
The London-based company, formed in 2021, spun out of DeepMind to explore commercial potential for AlphaFold, an AI program for predicting protein structures. DeepMind Chief Executive Officer Demis Hassabis also runs Isomorphic Labs, which has recruited heavily from its sister company.
The drug discovery unit has forged partnerships with pharmaceutical firms Johnson & Johnson and Eli Lilly & Co. It has also announced an agreement to expand its work with Novartis.
