Isomorphic Labs Raised $2.1 Billion in Series B Funding in May

Isomorphic Labs is in early discussions to raise new funding at a valuation of at least $40 billion and potentially as much as $50 billion, which would significantly increase the value assigned to Alphabet’s AI drug-discovery company.

The financing has not closed. The amount sought, potential investors, valuation methodology and other terms have not been disclosed, and the discussions could change or end without a deal.

Isomorphic Labs raised $2.1 billion in Series B funding announced May 12, 2026. Thrive Capital led the round, with participation from Alphabet, GV, MGX, Temasek, CapitalG and the UK Sovereign AI Fund.

The proceeds are supporting development of the company’s AI drug-design engine, global expansion, hiring and therapeutic programs moving toward clinical development. Isomorphic Labs also announced a $600 million external investment round on March 31, 2025.

Founded in 2021 after being launched from DeepMind, Isomorphic Labs applies artificial intelligence to drug discovery and design involving small molecules, antibodies, peptides and other drug modalities.

Its collaborations with Eli Lilly and Novartis announced in 2024 could be worth nearly $3 billion, excluding potential royalties. The company also announced a multi-target, cross-modality research collaboration with Johnson & Johnson on Jan. 20, 2026.

Alphabet President and Chief Investment Officer Ruth Porat said, “The application of AI in healthcare offers a profound opportunity.” Isomorphic Labs founder and CEO Sir Demis Hassabis said, “This funding round is a massive vote of confidence from a diverse group of top-tier international investors in our AI-first approach to drug design and development.”

In February 2026, IsoDDE more than doubled AlphaFold 3’s accuracy on a challenging protein-ligand structure-prediction benchmark and outperformed AlphaFold 3 by 2.3 times on a novel antibody-antigen test set.

The proposed funding would come about five months after the company’s disclosed Series B round. No completed transaction or official valuation for the new financing has been announced.