Google DeepMind offshoot nears $4bn valuation just a month after founding

By the Editorial Team · Friday, September 18, 2026

British AI start-up Emulate, founded by former Google DeepMind researchers, is close to securing up to $700 million in funding at a valuation near $3.7 billion just two months after its launch. This rapid capital influx underscores investors' strong confidence in early-stage AI ventures led by industry veterans and signals significant growth potential in the emerging field of AI world models.

A British artificial intelligence start-up founded by former researchers from Google DeepMind is nearing a valuation of $4 billion less than two months after its inception, as it pursues a substantial new funding round. Emulate, registered in the UK in August, is negotiating to raise up to $700 million in fresh capital at a valuation of approximately $3.7 billion, according to sources familiar with the discussions.

The funding round is expected to be led jointly by Index Ventures, based in the United Kingdom, and Lightspeed Venture Partners from Silicon Valley. Emulate’s founding team includes former DeepMind researchers Jack Parker-Holder, Matthew McGill, and Philip Ball, who previously contributed to the development of the lab’s Geni world models.

Geni, unveiled in January, is an AI system capable of generating realistic videos and interactive three-dimensional environments from brief prompts. Its debut made a significant impact on the video game sector, disrupting the market valuations of companies such as Take-Two Interactive, Roblox, and Unity. World models, which are designed to understand and simulate physical spaces, represent an emerging area of AI research distinct from large language models that power technologies like ChatGPT, Gemini, and Claude.

Emulate’s rise follows notable leadership changes at DeepMind, with co-founder Sir Demis Hassabis recently stepping down as the company’s CEO to take on the role of chairman. Hassabis was instrumental in establishing Google’s AI research presence in London following its acquisition of DeepMind in 2014.

The emergence of start-ups led by alumni of major AI firms—often referred to as neo-labs—is reshaping the industry, drawing billions in investment largely based on the reputations of their founders rather than fully developed products. This trend highlights investor eagerness to back promising AI ventures early in their development.

In a related development last month, Google’s chief scientist Jeff Dean announced his departure to launch a US-based AI start-up, Discovery Loop. While details of Emulate’s fundraising efforts remain under wraps, representatives from Index Ventures, Lightspeed, and Emulate declined to comment on the ongoing negotiations.

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