A man wearing a face mask walks past the Nvidia logo in Taipei, Taiwan.
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chip maker Nvidia Will invest 50 million US dollars Recursive Pharma Accelerate the growth of biotech companies artificial intelligence model It will be used in drug discovery, the companies said Wednesday.
Shares of Recursion soared 80% following the news. Shares of Nvidia have risen more than 2% this year on hopes for its artificial intelligence computing chips, which has fueled the stock market’s gains this year.
Recursion uses AI-driven models to identify and design new therapies and makes these models available to other drugmakers, including Roche and Bayer.
Salt Lake City, Utah-based Recursion will use its biological and chemical dataset of more than 23,000 terabytes to train its artificial intelligence models on Nvidia’s cloud platform. AI models typically require large amounts of data (often measured in terabytes) for training.
Nvidia can then license those AI models on BioNeMo, the generative AI cloud service for drug discovery that the company launched earlier this year.
Recursion anticipates using BioNeMo to support its internal drug pipeline and those of its current and future partners. Recursion is conducting human trials of five of its drugs.
“Our partnership with NVIDIA represents two best-in-class companies joining forces to help solve one of the world’s most difficult challenges: drug discovery,” Recursion CEO Chris Gibson said in a press release.
Nvidia’s investment is the latest example of the artificial intelligence boom sweeping the pharmaceutical industry. Drugmakers are increasingly recognizing the potential of artificial intelligence to bring life-saving treatments to people more quickly.
modern In April, the company said it would use the power of artificial intelligence to advance the company’s messenger RNA technology for a COVID-19 vaccine. a month later, Google Cloud has launched two new artificial intelligence tools designed to help biotech and pharmaceutical companies accelerate drug discovery.
Nvidia, which makes chips for artificial intelligence, is seen as a big winner in the AI boom.
The company topped a trillion-dollar market capitalization for the first time in June, part of a more than 200% rise in shares this year on buoyant demand for artificial intelligence.
The investment in Recursion will only deepen Nvidia’s bet on the popular technology.
The news comes as Recursion has also stepped up its focus on artificial intelligence. May company Acquired two companies Enter the AI-driven drug discovery space with an $87.5 million deal.
Shares of other AI-driven drugmakers also traded higher on Wednesday following the news.
Knowledge increased by as much as 12%, while AbCellera biologics An increase of more than 13%.
– CNBC’s Benjamin Taubman contributed to this report.