Emulate, founded by ex-DeepMind researchers, valued at $3.7 billion

UK startup Emulate is close to finishing its seed funding round, with a valuation expected to reach $3.7 billion. The company was founded in August by former Google DeepMind researchers Jack Parker-Holder, Matthew McGill, and Philip Ball, who developed the Genie world model that can generate realistic 3D interactive environments from short prompts.

Emulate is in deep talks with potential investors to raise up to $700 million. UK-based Index Ventures and Silicon Valley's Lightspeed Venture Partners are expected to co-lead the round.

When Genie was unveiled, it shook the industry, wiping billions off the market value of companies like T2 and Roblox, showing the technology's potential impact on gaming and virtual environments.