UK AI startup Emulate launched a funding round to raise up to $700 million, achieving a post-money valuation of approximately $3.7 billion. Led by Index Ventures and Lightspeed Venture Partners, Emulate was founded in August 2026 by former Google DeepMind researchers Jack Parker-Holder and Matthew McGill, known for creating the Genie world model. Genie generates realistic videos and interactive 3D environments from short prompts, impacting the gaming sector significantly. Emulate is part of a broader trend of neo-labs, startups founded by ex-researchers from major AI firms, which have attracted hundreds of billions in funding this year. These companies face high costs for computing power and top-tier researcher recruitment.