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Google DeepMind’s AlphaFold shows why science may be AI’s killer app

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While many businesses continue to seek AI’s killer app, biochemists have already found it. That application is protein folding. This week marks the five-year anniversary of the debut of Alpha Fold 2, the AI system created by Google DeepMind that can predict the structure of a protein from its DNA sequence with a high degree of accuracy.

In those five years, AlphaFold 2 and its successor AI models have become almost as fundamental and ubiquitous tools of biochemical research as microscopes, petri dishes, and pipettes. The AI models have begun to transform the way scientists search for new medicines, promising faster and more successful drug development. And they are starting to help scientists work on solutions to everything from ocean pollution to creating crops that are more resilient to climate change.

“The impact has really exceeded all of our expectations,” John Jumper, the senior Google DeepMind scientist who leads the company’s protein structure prediction team, told Fortune. In 2024, Jumper and Google DeepMind cofounder and CEO Demis Hassabis shared the Nobel Prize for Chemistry for their work creating AlphaFold 2.

Learning how to use AlphaFold to make protein structure predictions is now taught as a standard tool to many graduate-level biology students around the world. “It is just a part of training to be a molecular biologist,” Jumper said.

Fortune chronicled Google DeepMind’s quest to crack what’s known as “the protein folding problem” in a 2020 feature story. Proteins have a complex physical shape, and prior to Alphafold, describing those shapes required time-consuming and expensive lab experiments.

The company ultimately solved the problem by using a Transformer, the same kind of AI that is the engine of popular chatbots such as ChatGPT. But instead of training the Transformer on text to output the next most likely word, the AI model was trained on a database of protein DNA sequences and known protein structures, as well as information about which DNA sequences seem to evolve together, as this provides clues to protein structure. It is then asked to predict the protein structure.

“Sometimes I have to pinch myself that, oh, it really worked out. There could be many, many ways why we could have failed,” Pushmeet Kohli, the vice president of research at Google DeepMind who leads its efforts to apply AI to science, said.

Kohli also said that AlphaFold proved that AI could not just make tech companies lots of money but could contribute to science and, ultimately, the betterment of humanity. “AlphaFold really confirmed the underlying principle and the vision that if we are developing this technology, this artificial intelligence, what is the most meaningful thing humanity can use that thing for? And I think science is the perfect use case for AI. I won’t say it’s the only use case, but it is definitely the most compelling use case.”

From 180,000 protein structures to 240 million

Proteins are long chains of amino acids that act as the engines of life, controlling most biological processes. How a protein functions is, in turn, dependent on its shape. When cells produce proteins, the amino acids spontaneously fold into tangled and twisted structures, with pockets and protuberances, and sometimes long, trailing tails.

The laws of chemistry and physics determine this folding. That’s why Nobel Prize-winning chemist Christian Anfinsen postulated in 1972 that DNA alone should fully determine the final structure a protein takes. It was a remarkable conjecture. At the time, not a single genome had been sequenced yet. But Anfinsen’s theory launched an entire subfield of computational biology with the goal of using complex mathematics, instead of empirical experiments, to model proteins. The problem is, there are more possible protein structures than there are atoms in the universe, so modeling them, even with high-powered computers, is fiendishly difficult.

Before AlphaFold 2, the only way for a scientist to know a protein’s structure with any confidence was through one of a few expensive and lengthy experimental processes. As a result, scientists had only managed to determine the structures for about 180,000 proteins prior to AlphaFold 2. Other computer-based methods for predicting a protein’s structure were only accurate about 50% of the time, which was little help to biochemists, especially since they had no way of knowing in advance when a prediction might be trustworthy.

Thanks to AlphaFold 2, there are now more than 240 million proteins for which there is a prediction of their structure. These include every protein that the human body produces as well as proteins involved in key human diseases, such as Covid, malaria, and Chagas disease.

Google DeepMind made AlphaFold 2 freely available to researchers to download and run on their own computers. But, to make its predictions even more accessible, it also established an internet-based server through which researchers could upload a DNA sequence for protein and get back a structure prediction. And Google DeepMind created structure predictions for almost every known protein and deposited these in a database run by the European Molecular Biological Laboratory’s European Bioinformatics Institute, which is located outside Cambridge, England.

So far, more than 3.3 million people have used AlphaFold 2 to date. The original AlphaFold work has been directly cited in more than 40,000 academic papers, with 30% of those focused on the study of various diseases. One study found that the AI model has contributed directly or indirectly to some 200,000 research publications. The tool has also been mentioned in more than 400 successful patent applications, according to data from Google DeepMind.

Jumper tells Fortune he’s been most gratified by the way scientists have been able to use AlphaFold to find keys to life processes “where they didn’t even know what to look for.” For instance, scientists recently used AlphaFold to help discover a previously unknown protein complex that is essential for allowing sperm to fertilize an egg.

Andrea Paulli, the biochemist at the Research Institute of Molecular Pathology in Vienna, Austria, who found that protein on the surface of sperm, told science journal Nature that her team uses AlphaFold 2 “for every project” because “it speeds up discovery.”

Unlocking life’s mysteries, from heart disease to honeybees

Among the discoveries AlphaFold has played a role in is determining the structure of a key protein at the core of low-density lipoprotein, or LDL, more commonly known as “bad cholesterol” and a major contributor to heart disease. That protein, called apoB100, had previously not been mappable because of its large size and its complex interactions with other proteins. But two scientists at the University of Missouri combined an imaging method—cryogenic electron microscopy—with AlphaFold’s predictions to find apoB100’s structure. That in turn may help scientists find better treatments for high cholesterol.

Other scientists have used AlphaFold to discover the structure of Vitellogenin, a protein that plays a key role in the immune system of honeybees. The hope is that knowing the protein’s structure may help scientists better understand the collapse of honeybee populations globally and perhaps come up with genetic modifications that could produce more disease-resistant bee species.

The overall accuracy of AlphaFold’s predictions varies depending on protein type. But AlphaFold also provides a confidence score that gives scientists some indication of whether they should trust the AI’s predictions for the structure of that particular part of the protein. For the human proteins, about 36% of the predictions are high-confidence ones, while for the bacteria E.coli, AlphaFold has a high-confidence score for the structure in about 73% of cases.

Some proteins have regions that are called “inherently disordered” because their shape varies substantially depending on other substances and proteins that surround them. Neither the empirical imaging methods or the AI-based models provide good information about what these disordered regions will look like. (AlphaFold 3, a more powerful AI model Google DeepMind debuted in 2024 can sometimes—but not always—predict how these disordered regions will bind with another protein or molecule.)

AlphaFold’s impact on drug discovery is yet to be proven

AlphaFold is likely to eventually have a major impact on drug discovery, although to date, it is difficult to assess how much difference the AI model has made. In one case, scientists did use AlphaFold to find two existing FDA-approved drugs that could be repurposed to treat Chagas disease, a tropical parasitic illness that infects up to 7 million people annually and results in more than 10,000 deaths per year.

Jumper said that to some extent it is AlphaFold 2’s successor AI models that are likely to play a more direct role in drug discovery than the original structure prediction tool. AlphaFold 3, for instance, predicts not just protein structures but several critical aspects of how proteins bind with one another and with small molecules. That is essential because most drugs are either small molecules that bind with a target site on a protein to change its function, or, in some cases are themselves proteins. Meanwhile, AlphaFold Multimer, an extension of AlphaFold 2, predicts protein-protein interactions that can also help with drug design.

Google DeepMind has spun-off a sister company called Isomorphic that is using AlphaFold 3 and other tools to design drugs. It has partnerships with Novartis and Eli Lilly, although it has not yet publicly announced the drug candidates on which it is working. AlphaFold 3 is available to academic researchers for free, but commercial entities outside of Isomorphic and Google are not allowed to use the software.

Google DeepMind also created an AI model called AlphaProteo that can design novel proteins with specific binding properties. And the AI lab created a system called AlphaMissense that can predict how harmful single-point genetic mutations will be, which may help scientists understand the root cause of many diseases and potentially find treatments, including possible gene therapies.

Jumper said that he is personally interested in exploring whether large language models, such as Google’s Gemini AI, can play a role in science. Some AI startups have begun experimenting with LLMs that allow a scientist to specify the function of a protein and then the LLM spits out the DNA recipe for that protein. (These still have to be experimentally tested to see if they actually work.) But Jumper said he is somewhat skeptical of how well these kinds of LLMs work at designing very novel proteins. Jumper said he also knows that some people have created essentially chatbot front-ends to AlphaFold, but he said this was “not that interesting.”

Instead, he said, what excites him is the idea of using the power of LLMs to develop new hypotheses and design novel experiments to test them. DeepMind has created a prototype “AI scientist” based on Gemini that can do some of this. But Jumper said he thinks the concept has much more potential. “The really exciting dataset and the really big dataset is the entirety of the scientific literature,” he said. 



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Netflix to buy Warner Bros. in $72 billion cash, stock deal

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Netflix Inc. agreed to buy Warner Bros. Discovery Inc., marking a seismic shift in the entertainment business as a Silicon Valley-bred streaming giant tries to swallow one of Hollywood’s oldest and most revered studios.

Under terms of the deal announced Friday, Warner Bros. shareholders will receive $27.75 a share in cash and stock in Netflix, valuing the business at $82.7 billion including debt. The total equity value of the deal is $72 billion. Warner Bros. will spin off cable networks such as CNN and TNT into a separate company before concluding the sale of its studio and HBO to Netflix. 

Media mergers of this scale have a rocky history and this one is expected to bring intense regulatory scrutiny in the US and Europe. The deal combines two of the world’s biggest streaming providers with some 450 million subscribers. Warner Bros.’ deep library of programming gives Netflix content to sustain its lead over challengers like Walt Disney Co. and Paramount Skydance Corp. 

The acquisition, which confirmed a Bloomberg report Thursday, presents a strategic pivot for Netflix, which has never made a deal of this scope in its 28-year history. With the purchase, Netflix becomes owner of the HBO network, along with its library of hit shows like The Sopranos and TheWhite Lotus. Warner Bros. assets also include its sprawling studios in Burbank, California, along with a vast film and TV archive that includes Harry Potter and Friends. 

“I know some of you are surprised we are making this acquisition,” Netflix co-Chief Executive Officer Ted Sarandos said on a call with analysts Friday. He noted that Netflix has traditionally been known to be builders, not buyers. “But this is a rare opportunity that will help us achieve our mission to entertain the world.”

Netflix shares were down 3.5% Friday afternoon in New York. They have declined about 17% since the streaming leader emerged as an interested party in October. Some investors and analysts have interpreted this deal to mean Netflix was worried it couldn’t expand its current business, a theory co-CEO Greg Peters dismissed.

Warner Bros. stock was up about 5.2% midday in New York. It has almost doubled since reports of deal talks with Paramount emerged in September. Play Video

The news concludes a flurry of dealmaking over the past few months that began with a series of bids by Paramount. That prompted interest from Comcast Corp. and Netflix, who were both chasing just the studios and streaming business. All three submitted sweetened bids earlier this week, with Paramount ultimately offering $30 a share for all of Warner Bros. Discovery, arguing that its proposal offered a smoother path to regulatory approval. Netflix won out in the end although significant hurdles remain before the deal can close, which the company expects it can do in the next 18 months.

Paramount could still try to raise its bid, take its offer directly to shareholders or sue to try and block the Netflix deal. The company had no comment.

California Republican Darrell Issa wrote a note to US regulators objecting to any potential Netflix deal, saying it could result in harm to consumers. Netflix has argued that one of its biggest competitors, however, is Alphabet Inc.’s YouTube, and that bundling offerings could lower prices for subscribers. Netflix accounts for between 8% and 9% of TV viewing in the US each month, according to Nielsen. It accounts for closer to 20% or 25% of streaming consumption.

Analysts at Oppenheimer said platforms such as Reels, TikTok and YouTube competing for viewers’ time should help the deal pass antitrust review. 

It was 15 years ago that Time Warner CEO Jeff Bewkes, who oversaw Warner Bros. and HBO, shrugged off the threat posed by Netflix, comparing the then fledgling company to the Albanian Army. As Netflix began to invest in original programming, Sarandos declared that Netflix wanted to become HBO before HBO figured out streaming.

Sarandos succeeded and Netflix led the streaming takeover of Hollywood while HBO struggled to respond to the rise of on demand viewing and the decline of cable. Bewkes agreed to sell Time Warner to AT&T in 2016, the beginning of a decade of turmoil for HBO and Warner Bros., storied brands that are about to have their fourth owner in a decade.

Warner Bros. put itself up for sale in October after receiving three acquisition offers from Paramount, which were rejected, opening the door for Netflix and Comcast. Peters said he didn’t see the logic of these big transactions at Bloomberg’s Screentime conference in October, but Sarandos privately pushed for the deal.

The bidding got contentious, with Paramount accusing Warner Bros. of operating an unfair process that favored Netflix. The Netflix offer topped Paramount’s when combining the money for the studio and streaming business with the estimated value of the networks. The two sides agreed to the deal Thursday night. 

Under terms of the agreement, Warner Bros. shareholders will receive $23.25 in cash and $4.50 in Netflix common stock. Moelis & Co. is Netflix’s financial adviser. Wells Fargo is acting as an additional financial advisor and, along with BNP Paribas and HSBC Holdings, is providing $59 billion in debt financing, according to a regulatory filing, one of the largest ever loans of its kind. Allen & Co., JPMorgan Chase & Co. and Evercore are serving as financial advisers to Warner Bros. Discovery.

Netflix agreed to pay Warner Bros. a termination fee of $5.8 billion if the deal falls apart or fails to get regulatory approval. “We’re highly confident in the regulatory process,” Sarandos said Friday.

In addition to streaming overlap, regulators will also likely look at the impact on theatrical releases, which Netflix has traditionally eschewed in favor of prioritizing content on its platform.

Netflix said it will continue to release Warner Bros. movies in theaters and produce the studio’s TV shows for third parties — two major changes in how it does business. The company was a little short on details of exactly how it will integrate the different businesses, but Netflix said it expects to maintain Warner Bros.’ current operations and build on its strengths.

The deal will allow Netflix to “significantly expand” US production capacity and invest in original content, which will create jobs and strengthen the entertainment industry, the company said. The combination is also expected to create “at least $2 billion to $3 billion” in cost savings per year by the third year.

Warner Bros. Discovery CEO David Zaslav was the architect of combining Warner Bros. and Discovery in 2022, a deal he hoped would create a viable competitor to Netflix. But the company’s share price tanked in response to a series of public miscues and the continued decline of the cable network business. 

While performance rebounded a bit over the last year, the company never quite became the streaming dynamo Zaslav envisioned. He’ll continue to run the company through its spinoff and sale. The two companies haven’t yet agreed on him having any role at Netflix.

The traditional TV business is in the midst of a major contraction as viewers shift to streaming, the world that Netflix dominates. In the most recent quarter, Warner Bros. cable TV networks division reported a 23% decline in revenue, as customers canceled their subscriptions and advertisers moved elsewhere.



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Mark Zuckerberg renamed Facebook for the metaverse. 4 years and $70B in losses later, he’s moving on

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In 2021, Mark Zuckerberg recast Facebook as Meta and declared the metaverse — a digital realm where people would work, socialize, and spend much of their lives — the company’s next great frontier. He framed it as the “successor to the mobile internet” and said Meta would be “metaverse-first.”

The hype wasn’t all him. Grayscale, the investment firm specializing in crypto, called the Metaverse a “trillion-dollar revenue opportunity.” Barbados even opened up an embassy in Decentraland, one of the worlds in the metaverse. 

Five years later, that bet has become one of the most expensive misadventures in tech. Meta’s Reality Labs division has racked up more than $70 billion in losses since 2021, according to Bloomberg, burning through cash on blocky virtual environments, glitchy avatars, expensive headsets, and a user base of approximately 38 people as of 2022.

For many people, the problem is that the value proposition is unclear; the metaverse simply doesn’t yet deliver a must-have reason to ditch their phone or laptop. Despite years of investment, VR remains burdened by serious structural limitations, and for most users there’s simply not enough compelling content beyond niche gaming.

A 30% budget cut 

Zuckerberg is now preparing to slash Reality Labs’ budget by as much as 30%, Bloomberg said. The cuts—which could translate to $4 billion to $6 billion in reduced spend—would hit everything from the Horizon Worlds virtual platform to the Quest hardware unit. Layoffs could come as early as January, though final decisions haven’t been made, according to Bloomberg. 

The move follows a strategy meeting last month at Zuckerberg’s Hawaii compound, where he reviewed Meta’s 2026 budget and asked executives to find 10% cuts across the board, the report said. Reality Labs was told to go deeper. Competition in the broader VR market simply never took off the way Meta expected, one person said. The result: a division long viewed as a money sink is finally being reined in.

Wall Street cheered. Meta’s stock jumped more than 4% Thursday on the news, adding roughly $69 billion in market value.

“Smart move, just late,” Craig Huber of Huber Research told Reuters. Investors have been complaining for years that the metaverse effort was an expensive distraction, one that drained resources without producing meaningful revenue.

Metaverse out, AI in

Meta didn’t immediately respond to Fortune’s request for comment, but it insists it isn’t killing the metaverse outright. A spokesperson told the South China Morning Post that the company is “shifting some investment from Metaverse toward AI glasses and wearables,” point­ing to momentum behind its Ray-Ban smart glasses, which Zuckerberg says have tripled in sales over the past year.

But there’s no avoiding the reality: AI is the new obsession, and the new money pit.

Meta expects to spend around $72 billion on AI this year, nearly matching everything it has lost on the metaverse since 2021. That includes massive outlays for data centers, model development, and new hardware. Investors are much more excited about AI burn than metaverse burn, but even they want clarity on how much Meta will ultimately be spending — and for how long.

Across tech, companies are evaluating anything that isn’t directly tied to AI. Apple is revamping its leadership structure, partially around AI concerns. Microsoft is rethinking the “economics of AI.” Amazon, Google, and Microsoft are pouring billions into cloud infrastructure to keep up with demand. Signs point to money-losing initiatives without a clear AI angle being on the chopping block, with Meta as a dramatic example.

On the company’s most recent earnings call, executives didn’t use the word “metaverse” once.



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Robert F. Kennedy Jr. turns to AI to make America healthy again

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HHS billed the plan as a “first step” focused largely on making its work more efficient and coordinating AI adoption across divisions. But the 20-page document also teased some grander plans to promote AI innovation, including in the analysis of patient health data and in drug development.

“For too long, our Department has been bogged down by bureaucracy and busy-work,” Deputy HHS Secretary Jim O’Neill wrote in an introduction to the strategy. “It is time to tear down these barriers to progress and unite in our use of technology to Make America Healthy Again.”

The new strategy signals how leaders across the Trump administration have embraced AI innovation, encouraging employees across the federal workforce to use chatbots and AI assistants for their daily tasks. As generative AI technology made significant leaps under President Joe Biden’s administration, he issued an executive order to establish guardrails for their use. But when President Donald Trump came into office, he repealed that order and his administration has sought to remove barriers to the use of AI across the federal government.

Experts said the administration’s willingness to modernize government operations presents both opportunities and risks. Some said that AI innovation within HHS demanded rigorous standards because it was dealing with sensitive data and questioned whether those would be met under the leadership of Health Secretary Robert F. Kennedy Jr. Some in Kennedy’s own “Make America Health Again” movement have also voiced concerns about tech companies having access to people’s personal information.

Strategy encourages AI use across the department

HHS’s new plan calls for embracing a “try-first” culture to help staff become more productive and capable through the use of AI. Earlier this year, HHS made the popular AI model ChatGPT available to every employee in the department.

The document identifies five key pillars for its AI strategy moving forward, including creating a governance structure that manages risk, designing a suite of AI resources for use across the department, empowering employees to use AI tools, funding programs to set standards for the use of AI in research and development and incorporating AI in public health and patient care.

It says HHS divisions are already working on promoting the use of AI “to deliver personalized, context-aware health guidance to patients by securely accessing and interpreting their medical records in real time.” Some in Kennedy’s Make America Healthy Again movement have expressed concerns about the use of AI tools to analyze health data and say they aren’t comfortable with the U.S. health department working with big tech companies to access people’s personal information.

HHS previously faced criticism for pushing legal boundaries in its sharing of sensitive data when it handed over Medicaid recipients’ personal health data to Immigration and Customs Enforcement officials.

Experts question how the department will ensure sensitive medical data is protected

Oren Etzioni, an artificial intelligence expert who founded a nonprofit to fight political deepfakes, said HHS’s enthusiasm for using AI in health care was worth celebrating but warned that speed shouldn’t come at the expense of safety.

“The HHS strategy lays out ambitious goals — centralized data infrastructure, rapid deployment of AI tools, and an AI-enabled workforce — but ambition brings risk when dealing with the most sensitive data Americans have: their health information,” he said.

Etzioni said the strategy’s call for “gold standard science,” risk assessments and transparency in AI development appear to be positive signs. But he said he doubted whether HHS could meet those standards under the leadership of Kennedy, who he said has often flouted rigor and scientific principles.

Darrell West, senior fellow in the Brooking Institution’s Center for Technology Innovation, noted the document promises to strengthen risk management but doesn’t include detailed information about how that will be done.

“There are a lot of unanswered questions about how sensitive medical information will be handled and the way data will be shared,” he said. “There are clear safeguards in place for individual records, but not as many protections for aggregated information being analyzed by AI tools. I would like to understand how officials plan to balance the use of medical information to improve operations with privacy protections that safeguard people’s personal information.”

Still, West, said, if done carefully, “this could become a transformative example of a modernized agency that performs at a much higher level than before.”

The strategy says HHS had 271 active or planned AI implementations in the 2024 financial year, a number it projects will increase by 70% in 2025.



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