The round signals growing Middle East interest in AI infrastructure beyond core computing and data centers.

London-based Isomorphic Labs has raised USD 2.1 billion in a Series B funding round  led by Thrive Capital. The round also saw participation from Abu Dhabi’s MGX, as the AI drug discovery company moves to scale its technology and expand its pipeline of therapeutic programs.

In addition, the round also saw participation from Alphabet, GV, Temasek, CapitalG, the UK Sovereign AI Fund, and MGX.

Why You Should Care

MGX’s participation highlights how Gulf capital is increasingly moving deeper into the global AI stack, beyond chips, cloud infrastructure, and data centers. This time, the focus is on healthcare and drug discovery.

The investment also comes as competition intensifies around AI-powered pharmaceutical research. Companies are racing to use large-scale AI models to reduce the time and cost required to discover and develop new drugs.

Founded in 2021 by Sir Demis Hassabis, Isomorphic Labs is an AI-first drug design and development company. It develops AI models designed to accelerate drug discovery across multiple therapeutic areas.

With the new funding, it aims to support the expansion of its AI drug design engine, known as IsoDDE. It also seeks to scale hiring across AI, engineering, drug design, and clinical research. Additionally, it aims to accelerate therapeutic programs toward clinical development.

“This capital injection allows us to build out our drug design engine at scale, driving us forward in our mission to solve all diseases,” said CEO Sir Demis Hassabis.

The Ripple

For MGX, the deal expands its exposure to high-growth AI sectors outside infrastructure and semiconductor investments. The Abu Dhabi-backed firm has been steadily positioning itself across the broader AI economy, and healthcare is emerging as one of the next major battlegrounds.

The round also reflects growing investor confidence in AI-led biotech platforms globally. Capital is increasingly flowing toward companies building proprietary AI models with commercial applications in healthcare, pharmaceuticals, and life sciences.

What to Watch

The next phase for Isomorphic Labs will likely center on whether its AI models can translate into commercially viable drug candidates at scale.

More broadly, MGX’s participation may signal deeper Gulf interest in AI applications tied to healthcare, biotech, and scientific research as regional investors continue broadening their AI portfolios beyond compute infrastructure alone.