Isomorphic, powered by AI, raises $2.1 billion

Alphabet’s AI-based biotech Isomorphic Labs has raised $2.1B – the second-largest biotech funding round of all time, according to analysts.

“AI-driven drug developers have been sidetracked by platform hype over the past two years and have become more clinically specific,” PitchBook senior biotech and pharma analyst Ben Zercher wrote in an email. In fact, funding in the past year at least has been directed toward later-stage assets, as investors’ aversion to risk increases.

However, in the face of Alphabet’s investment in Isomorphic and Google’s “DeepMind halo”, the company seems to be doing everything possible to go against the grain, Zercher said. “Rounds like this are helping to provide tech capital an outlet for biotech and the rest of the industry to concentrate on getting drugs to patients, which is probably a good balance.”

Altos Labs, another AI-enabled drug discovery engine that came onto the scene in 2022, has the largest biotech round with a whopping $3 billion.

Isomorphic hasn’t yet disclosed a pipeline molecule. Rather, the Series B funding round will be used for the “continued development and deployment of its AI drug design platform,” according to the company’s press release. According to the biotech’s website, Isomorphic’s engine is based on machine learning models, which allow the biotech to work on various therapeutic areas and modalities, instead of focusing exclusively on a disease target.

The AI-driven method also reduces the time-consuming experimental work and gets rid of most early bench work, which the company calls “experimental work,” but so far, the company hasn’t seen this pay off in the clinic.

Isomorphic is “developing an internal drug candidate pipeline focused in oncology and immunology,” according to the biotech’s website. The company announced that the technology investment will also come as a Series B round that will further help to accelerate and expand this pipeline toward the clinic.

Thrive Capital led the push for Series B. In addition, parent company Alphabet (also the parent of Google) also joined the round, and so did Temasek, Capital G, and the UK Sovereign AI Fund.

In 2021, Isomorphic joined the fray, with a platform based on the AlphaFold models and the family of models that accurately predict the structure of DNA, RNA and protein, and their interaction. In 2024, AlphaFold was awarded a Nobel Prize in Chemistry. Since then, Isomorphic has gone on to become a unicorn company.

In January, 2024, Isomorphic signed two separate large-scale contracts with Eli Lilly and Novartis to leverage the biotech’s AI engine to create and optimize small-molecule drugs for unknown targets. Lilly paid $45 million up front and guaranteed up to $1.7 billion in milestones, while Novartis paid up front $37.5 million and guaranteed up to $1.2 billion in contingent payments. The biotech raised a $600-million first external round of funding in March 2025.

Isomorphic has raised an impressive $2.1 billion in fresh funding to scale its artificial intelligence-driven drug discovery platform. The major investment highlights growing confidence in AI-powered healthcare innovation and positions Isomorphic as one of the leading biotech companies transforming pharmaceutical research through advanced machine learning technologies.

Isomorphic Accelerates AI Drug Discovery

The latest funding round will help Isomorphic expand its AI drug design engine and advance its pipeline of experimental therapies. Founded as a spin-off from Google DeepMind, Isomorphic uses artificial intelligence to predict molecular structures and accelerate medicine development.

The company aims to reduce the time and cost required to develop new treatments while improving the accuracy of drug discovery processes.

With $2.1 billion in new funding, Isomorphic is expected to strengthen its position in AI-powered drug discovery and expand collaborations across the pharmaceutical industry. The company’s long-term vision focuses on accelerating scientific breakthroughs and improving global healthcare outcomes through artificial intelligence.