According to Sina Finance, Isomorphic Labs, the AI drug-discovery startup spun out of Alphabet's DeepMind, is in early talks for a new funding round targeting a valuation of at least $40 billion. One source said the round could value the company at as much as $50 billion, but the financing has not been completed and terms may still change. Bloomberg previously reported that Isomorphic Labs completed a $2.1 billion Series B round five months ago. At the time, Demis Hassabis, who was then also DeepMind chairman, said Alphabet provided a "large portion" of the funding but declined to disclose Alphabet's stake or the company's valuation. Hassabis previously led DeepMind and said in August that he would move to the chairman role and become Alphabet's chief scientist while continuing as Isomorphic Labs CEO. London-based Isomorphic Labs was spun out of DeepMind in 2021 and aims to commercialize the AlphaFold protein-folding model. The company competes with firms trying to apply advanced AI to pharmaceuticals, including OpenAI, which released a life sciences research model this year.