Emulate, a startup founded in August by former Google DeepMind researchers Jack Parker-Holder, Matthew McGill, and Philip Ball, is in advanced talks to raise up to $700 million. The round is expected to be led by Index Ventures and Lightspeed Venture Partners, valuing the company at $3.7 billion.
The founders previously worked on DeepMind’s Genie models, which generate 3D environments from text or images. Emulate focuses on world models for robotics and simulation, aiming to predict real-world physical outcomes. The company has not yet launched a product, published a website, or disclosed its team size.
The competitive landscape includes well-funded rivals like World Labs, which reached a valuation of nearly $5 billion after raising $1.23 billion. Other notable spin-offs include Ineffable Intelligence, which raised $1.1 billion at a $5.1 billion valuation, and Recursive Superintelligence, which secured $500 million at a $4 billion valuation.
Data from Evertrace indicates that 112 DeepMind alumni have launched or are starting new ventures within the last 18 months. The market for physical AI products, including world models for robotics, is projected to grow from $1.5 billion in 2026 to $15.24 billion by 2032.
