Emulate, a UK AI startup founded in August 2026 by former Google DeepMind researchers Jack Parker-Holder, Matthew McGill and Philip Ball, is negotiating a $700 million seed round at an approximately $3 billion pre-money valuation. If completed on those terms, the financing would give Emulate a post-money valuation of about $3.7 billion, making it one of the most highly valued seed-stage companies in history. The company is developing AI systems that simulate and predict physical-world dynamics, building on its founders’ work on DeepMind’s Genie project, which generated realistic video content and interactive 3D worlds. Index Ventures and Lightspeed Venture Partners are reportedly leading the discussions, although the fundraising remains ongoing and final terms could change. Emulate would be the third major AI lab spinout from DeepMind in 2026, following Ineffable Intelligence’s $1.1 billion seed round and Recursive Superintelligence’s seed financing of more than $600 million.