In a significant boost to the pharmaceutical industry's AI revolution, chipmaker Nvidia has announced a $50 million investment in Recursion Pharmaceuticals. The collaboration aims to expedite drug discovery processes through the implementation of advanced AI algorithms. The announcement resulted in an astounding 80% surge in Recursion's shares, while Nvidia, renowned for its AI computing chips, enjoyed a 2% climb in the stock market.
Recursion Pharmaceuticals, headquartered in Salt Lake City, plans to harness Nvidia's cloud platform, utilizing its massive 23,000-terabyte biological and chemical datasets to train their AI models. Significantly, the datasets continue to grow exponentially, expanding by "hundreds of terabytes every week," as mentioned by Recursion CEO Chris Gibson during CNBC's "Closing Bell Overtime."
Training AI models requires substantial amounts of data, and Nvidia's cloud service for generative AI in drug discovery, BioNeMo, provides a fitting platform for Recursion's ambitions. The collaboration may also involve licensing the AI models developed by Recursion on BioNeMo. This opens the door for further drug development by Recursion and its partners.
Notably, Recursion is already making headway in drug development, with five medications currently under human testing. Among these, a neurovascular disease medication and an ovarian cancer treatment hold particular promise, with potential results expected next year.
Furthermore, Recursion's CEO, Chris Gibson, emphasized their focus on the long term, believing that technology, automation, and cutting-edge tools in biology and chemistry will substantially hasten drug discovery. Their efforts have already yielded positive proof points, setting the stage for exciting developments in the coming years.
The pharmaceutical industry's embrace of AI technologies has accelerated in recent times, with Nvidia's investment marking yet another significant milestone. AI-powered advancements are revolutionizing drug discovery and promising faster delivery of life-saving medications. Moderna, in April, affirmed the potential of AI in enhancing its messenger RNA technology, instrumental in the development of COVID vaccinations. Moreover, Google Cloud has released two AI-powered drug discovery tools, further underscoring the growing prominence of AI in this domain.
Nvidia, a prominent player in the AI chip market, has experienced remarkable success, reaching a trillion-dollar market value in June, largely driven by the soaring demand for AI solutions. Recursion Pharmaceuticals, too, has not been shy in its pursuit of AI-driven innovation. In May, the company acquired two AI-driven drug development startups for $87.5 million, further solidifying its position as a frontrunner in the race to revolutionize drug discovery.
Nvidia's strategic investment in Recursion has not only strengthened the latter's capabilities but has also sparked enthusiasm among other AI-driven drugmakers. Exscientia and AbCellera Biologics experienced substantial stock market gains of 12% and 13%, respectively, in the wake of the announcement.
The convergence of AI and pharmaceuticals is proving to be a game-changer, and collaborations like the one between Nvidia and Recursion exemplify the transformative potential of these technologies. As the partnership unfolds and more AI-driven drug discoveries come to fruition, the prospect of accelerated drug development and improved patient outcomes becomes increasingly tangible.