Emulate, an AI startup established in August by former Google DeepMind researchers, is in talks for a funding round that could total $700 million. According to the Financial Times, the investment is led by Index Ventures and Lightspeed Venture Partners and could value the company at $3.7 billion.
This trend is common in the AI industry, where investors pour billions into teams that have recently left major labs, often before they’ve even launched a product, based solely on the founders’ technical reputation.
The company has assembled a team that includes Jack Parker-Holder, Matthew McGill, and Philip Ball, all former DeepMind employees. The trio worked on developing Genie, a “world” model capable of generating realistic videos and interactive 3D environments from text commands.
Genie was unveiled in January and made a significant impact on the market. Shares of gaming companies like Take-Two, Roblox, and Unity lost billions in market value, reflecting concerns that the technology could automate parts of game development. World models—systems trained to understand and simulate physical space—are now a less competitive research area compared to the race for large language models, a field dominated by ChatGPT, Gemini, and Claude.
DeepMind’s third billion-dollar spin-off this year
Emulate is not alone. It is the third “neo-lab”—a term used to describe companies founded by former researchers from major AI firms—to emerge from DeepMind’s London offices in 2024, raising hundreds of millions of dollars.
- David Silver, also a former DeepMind employee, raised approximately $1 billion for his startup Ineffable Intelligence, which is valued at $5 billion.
- A team of former DeepMind and OpenAI employees raised over $600 million for Recursive Superintelligence, with a valuation of $4 billion.
This wave of new ventures is not limited to the UK. Last month, Jeff Dean, Google’s chief scientist, announced his departure to found Discovery Loop, an American startup.
The timing of Emulate’s negotiations is particularly significant, as it comes just weeks after Demis Hassabis, DeepMind’s co-founder, stepped down as CEO to become chairman of the company’s board.
Hassabis sold DeepMind to Google in 2014 and is considered a key figure in building the AI research capabilities that the London lab currently possesses.
Frequently Asked Questions
What could the AI startup Emulate be worth?
Emulate could reach a valuation of $3.7 billion just one month after its founding. According to the Financial Times, the startup is negotiating a funding round of up to $700 million led by Index Ventures and Lightspeed Venture Partners.
Who are the founders of Emulate?
Emulate was founded by former Google DeepMind researchers Jack Parker-Holder, Matthew McGill, and Philip Ball, who worked on developing the Genie world model.
What is Genie, the model developed by Google DeepMind?
Genie is a world model capable of generating realistic videos and interactive 3D environments from text commands. Jack Parker-Holder, Matthew McGill, and Philip Ball participated in its development before founding Emulate.
What are world models in artificial intelligence?
World models are AI systems trained to understand and simulate physical space. This area is considered a less competitive research frontier than large language models, a market dominated by ChatGPT, Gemini, and Claude.
How did the launch of Genie affect video game companies?
Shares of Take-Two, Roblox, and Unity lost billions in market value after Genie’s launch in January. The decline reflected concerns that the technology could automate parts of the game creation process.
What billion-dollar startups have been created by former DeepMind researchers?
In addition to Emulate, David Silver raised approximately $1 billion for Ineffable Intelligence, which is valued at $5 billion. A team of former DeepMind and OpenAI employees also raised over $600 million for Recursive Superintelligence, which is valued at $4 billion.
