DeepMind spinout Isomorphic Labs reportedly eyes $40B valuation

Isomorphic Labs, the DeepMind spinout that develops AI-first drug design and digital biology, is reported to be eyeing a $40 billion valuation — less than five months after a $2.1 billion round.

The $40 billion figure comes from a report on the company's plans, and the timing is what stands out: the $2.1 billion raise is still fresh, announced in early May, according to the announcement record, with the report surfacing only months later. Neither the investors behind the prospective valuation nor the backers of the $2.1 billion round were named in the available material, and no use of proceeds was disclosed for the earlier raise.

That silence leaves the shape of any new deal unstated. Whether the $40 billion figure reflects a fresh primary raise, a secondary transaction, or a markup applied by existing investors is not detailed in the source.

What is not in question is the category Isomorphic Labs occupies. Spun out of Google's DeepMind, the company applies machine learning to drug discovery, using predictive and generative models to work on biological problems and molecule design. It is a pure-play bet on the proposition that frontier AI can compress the time and cost of pharmaceutical research — a thesis that has pulled large sums into AI-driven biotech even as the field's commercial payoff remains unproven.

For now, the reported $40 billion target, if realised, would represent a steep step-up in a matter of months, and a signal of how aggressively investors are pricing the intersection of AI and drug development. The report did not identify the investors involved or the structure of any potential transaction.