IsoDDE also predicts binding affinity with higher accuracy, aiding the search for therapeutic compounds.

Isomorphic Labs plans to use the new capital to enhance IsoDDE and expand its global presence.

Isomorphic Labs, Alphabet’s AI drug discovery unit spun out from Google DeepMind, is nearing a funding round exceeding $2 billion led by Thrive Capital to bolster its drug design engine and global expansion, with Alphabet expected to participate though the deal isn’t closed yet.

Thrive Capital previously led Isomorphic Labs’ first round, and Alphabet is anticipated to join the new round as part of a strategic, long-horizon funding push.

IsoDDE accelerates drug development by automating workflows and may outperform AlphaFold 3 on certain tasks.

The fundraising signals a shift toward high-capital, long-horizon AI-biotech ventures, distinct from faster, software-driven AI markets.

IsoDDE, Isomorphic Labs’ Drug Design Engine, can identify protein binding pockets and, in some cases, surpasses AlphaFold 3 on difficult tasks while needing less protein data.

Alphabet’s backing provides structural advantages, including access to AI infrastructure and long-term funding, potentially enabling a broader role beyond partnerships.

Alphabet’s investment mirrors its strategy of turning AI ventures into standalone businesses, following examples of large funding rounds in other units.

The funding will support scaling its drug-design engine and international operations.

Isomorphic Labs spun out from Google DeepMind in 2021 and is led by Demis Hassabis, aiming to commercialize AlphaFold’s potential.

Isomorphic Labs has ongoing industry collaborations, including partnerships with Johnson & Johnson and Eli Lilly, and expanded work with Novartis.