Three researchers from Google's DeepMind unit have formed a UK-based AI startup that is negotiating a massive initial financing package. Emulate is in advanced talks to raise as much as $700 million at a roughly $3.7 billion valuation, according to the Financial Times. Index Ventures and Lightspeed are expected to co-lead the round just one month after the company's August founding.

The founders previously worked on Genie world-model efforts, which focus on AI systems capable of generating and simulating interactive environments. Emulate is currently operating in stealth and has not publicly detailed its product. The potential raise follows David Silver's Ineffable Intelligence, another DeepMind spinout that raised $1.1 billion in April at a $5.1 billion valuation.