A man wearing a mask walks past a Nvidia logo in Taipei, Taiwan.
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Chip manufacturer Nvidia is set to invest $50 million in Recursion Pharmaceuticals to accelerate the development of the biotech firm’s cutting-edge artificial intelligence models for drug discovery. The joint announcement by both companies on Wednesday saw Recursion’s stock surge by 80%, while Nvidia’s shares rose by over 2%.
Recursion Pharmaceuticals utilizes AI-powered models to identify and design new therapies, making them available to other drug manufacturers such as Roche and Bayer. Powered by Nvidia’s cloud platform, Recursion will harness its vast biological and chemical datasets, exceeding 23,000 terabytes, to train its AI models. These models can potentially be licensed on Nvidia’s BioNeMo, a cloud service designed for generative AI in drug discovery.
Recursion plans to leverage BioNeMo to support its internal drug pipeline and collaborations with current and future partners. The company is currently conducting human trials for five of its drugs. Recursion CEO Chris Gibson expressed excitement about the collaboration, stating, “Our collaboration with NVIDIA represents two best-in-class companies coming together to help solve one of the world’s most difficult challenges, drug discovery.”
Nvidia’s investment in Recursion is just the latest example of how AI is revolutionizing the pharmaceutical industry. The potential of AI in accelerating the development of life-saving treatments has caught the attention of drug manufacturers. Moderna announced in April its plans to utilize AI in advancing its messenger RNA technology, while Google Cloud recently launched AI-powered tools to aid in drug discovery.
Nvidia, known for producing chips that power AI, has experienced tremendous success in the AI industry. The company reached a trillion-dollar market value for the first time in June, with its stock price increasing by over 200% since the beginning of the year.
Additionally, Recursion has been strengthening its focus on AI, as evidenced by its acquisition of two AI-driven drug discovery companies for $87.5 million in May. Following the announcement of Nvidia’s investment, other AI-driven drugmakers such as Exscientia and AbCellera Biologics also experienced significant stock price increases.
— CNBC’s Benjamin Taubman contributed to this report.
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