Talks To Raise Investment At Higher Valuation After $600M Round

Isomorphic Labs’ $600 million raise in early 2025 set the benchmark for its next financing, and the AI drug discovery company is now in early talks to raise fresh capital at a valuation above that round, testing investor appetite for the sector.

Key Takeaways

• Isomorphic Labs is in early talks to raise fresh capital at a valuation above its early 2025 financing round
• The company raised $600 million in early 2025 in a round backed by Thrive Capital alongside Alphabet
• Isomorphic Labs has not disclosed a revenue figure, and its partnership milestone payments are potential rather than realized revenue
• Isomorphic Labs has drug discovery partnerships with Eli Lilly and Novartis reportedly worth more than $1 billion each in potential milestone payments

No revenue figure has been disclosed, and the company’s partnership milestone payments are potential rather than realized revenue.

For a higher valuation to make sense, investors would need to believe its AI platform can convert those drug discovery programs into commercially valuable outcomes.

The Shape Of The New Round

Three Bloomberg reporters, Natalie Lung, Mark Bergen and Rebecca Torrence, working alongside television correspondent Ed Ludlow, broke the story Thursday. No target valuation or close date has surfaced publicly, and Alphabet has not commented on the talks.

Isomorphic Labs raised $600 million in early 2025 in a round backed by Thrive Capital alongside Alphabet, which has supplied the bulk of the company’s capital since it was carved out of DeepMind in 2021.

A markup from that mark would be the clearest signal yet that investors still treat AI-driven biotech as separate from the pullback hitting speculative AI infrastructure plays elsewhere in the market.

Also Read: AI Image Generation Launch Offers Six Directions For One Envato Credit

From AlphaFold To The Clinic

Isomorphic Labs exists to commercialize the protein structure prediction work behind AlphaFold, the DeepMind system that won its creators a Nobel Prize in Chemistry in 2024 for solving how amino acid sequences fold into three-dimensional protein shapes.

The company applies that machine learning approach to a harder commercial problem, predicting how small molecule drugs bind to disease targets, a step that normally takes chemists years of lab-bound trial and error to resolve.

Isomorphic has already signed drug discovery partnerships with Eli Lilly and Novartis, agreements reportedly worth more than $1 billion each in potential milestone payments.

Why Pharma Became AI’s Priciest Testing Ground

Drug discovery has become one of AI’s most capital-intensive proving grounds because a single failed late-stage clinical trial can cost a drugmaker hundreds of millions of dollars.

Investors are betting that AI labs able to filter out bad drug candidates before they reach human trials can save that money many times over.

Isomorphic’s DeepMind pedigree, led by Nobel laureate Demis Hassabis, has made it one of the best funded companies chasing that outcome, ahead of rivals such as Recursion Pharmaceuticals and Insilico Medicine.

Read Next: Bitmine Ether Stash Tops 6 Million Tokens Worth $16.4 Billion