DeepMind spinoff valued at $3.7 billion

Emulate, founded just a month ago by former Google DeepMind researchers, is raising up to $700 million in funding. The U.K.-based startup is in advanced discussions with investors.

Founded by DeepMind veterans

Emulate was incorporated in August by Jack Parker-Holder, Matthew McGill and Philip Ball, who helped develop its Genie world models at DeepMind.

Genie shook the gaming industry

Emulate's Genie model can generate realistic videos and interactive 3D environments from a short prompt. Its January debut erased billions in market value from Take-Two, Roblox and Unity.

World models are AI's new frontier

World models, trained to understand and replicate physical space, represent a less crowded frontier in AI research compared to large language models like ChatGPT or Claude.

Third major DeepMind spinoff this year

Emulate is the third AI lab to spin off from DeepMind's London offices this year with hundreds of millions in funding. Ineffable Intelligence, founded by DeepMind veteran David Silver, raised $1.1 billion in April.

Depth of AI use drives returns

Companies with AI embedded in three or more functions report returns 90 percent of the time, versus 50 percent for those with one or two functions. Depth matters more than breadth for financial outcomes.

“Depth of AI tool usage, not breadth, is driving financial outcomes.”