Alphabet's Isomorphic Labs seeks new funding at a $40 billion valuation

Isomorphic Labs, the Alphabet subsidiary led by Nobel laureate Demis Hassabis, is pursuing fresh financing that could place its valuation at $40 billion. The funding round aims to speed up the lab's drug-discovery efforts using AI. Competitors such as DeepSeek, Moonshot and OpenAI are also courting large sums as they vie for leadership in the global AI race. Analysts warn that the rapid escalation of AI spending may be inflating a bubble that could have wide-reaching consequences if it bursts.