March 31 (Reuters) - Isomorphic Labs, which uses

artificial intelligence technologies for drug discovery, has

raised $600 million in its first ever external funding round led

by Thrive Capital, the startup said on Monday.

Google Ventures and Alphabet, an existing

investor, also participated in the round.

WHY IT'S IMPORTANT

Top tech companies are racing to position AI-powered

offerings as central to their products and services.

Startups catering to the surge in demand for generative AI

and machine learning have been a bright spot in the private

funding market.

CONTEXT

Isomorphic was founded in 2021 as a spin-off from

Alphabet's AI research subsidiary Google Deepmind, which it

acquired in 2014.

Last May, the company unveiled the third major version of

its Nobel-winning "AlphaFold" artificial intelligence model,

which is able to predict almost all known proteins structures.

WHAT'S NEXT

The London-based company said funds raised will be used to

accelerate research and development as well as talent

acquisition.

Founder and Chief Executive Officer Demis Hassabis, who also

leads Deepmind, suggested in January that Isomorphic Labs will

have AI-designed drugs in clinical trials by the end of 2025.