• NVIDIA invests 50 million in Techbio company Recursion Pharmaceuticals
• Businesses work together
• Recursion stock up significantly
Recursion Pharmaceuticals stock jumped 78.17 percent to $12.08 on the US NASDAQ stock exchange on Wednesday. It also rose in Thursday trading, ultimately trading 2.94 percent higher at $12.4.
NVIDIA steps in
The chip group NVIDIA is responsible for the significant jump in price. It invested 50 million US dollars in the Salt Lake City-based company as part of a private investment in public equity transaction (PIPE transaction). This was announced by Recursion Pharmaceuticals in a press release.
“Our collaboration with NVIDIA represents two world-class companies coming together to help solve one of the world’s toughest challenges – drug discovery,” said Dr. Chris Gibson, co-founder and CEO of Recursion quoted in press release. “With our powerful data set and NVIDIA’s accelerated computing capabilities, we intend to create breakthrough fundamental models in biology and chemistry on a scale never before seen in the biological field.”
AI as a drug discovery tool
Specifically, Recursion has plans to accelerate the development of its AI foundational models for biology and chemistry. As part of a collaboration with NVIDIA, they want to optimize the models and sell them to biotechnology companies via NVIDIA cloud services.
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The focus of the collaboration is BioNeMo, NVIDIA’s AI-supported cloud service for drug research. Recursion plans to use its own “proprietary biological and chemical dataset spanning more than 23 petabytes and 3 trillion searchable gene and compound relationships” to train base models on the NVIDIA DGX™ Cloud for potential commercial license/release on BioNeMo accelerate.
Positive tones about the cooperation could be heard from NVIDIA. “Generative AI is a revolutionary tool for discovering new drugs and treatments,” said NVIDIA CEO Jensen Huang. “We are excited to be collaborating with Recursion’s world-class team, which is pioneering digital biology and chemistry with NVIDIA DGX and NVIDIA AI software, to enable the development of the world’s largest biomolecular generative AI models and drug discovery for biotech– and speed up pharmaceutical companies.”
Analyst excited
Analysts positively evaluate the cooperation between NVIDIA and Recursion. Gil Blum, an analyst at Needham & Co., sees the injection of capital confirming Recursion in its leading position. “The collaboration gives Recursion access to the most powerful AI computing company in the world,” quoted Wallstreet-Online from a message from the expert to customers.
NVIDIA shares continue to climb, hitting record highs in strong environment
NVIDIA shares continued Thursday’s gains to hit a record high. Most recently, an increase of 4.73 percent to 459.77 US dollars was recorded. This put them among the best values in the NASDAQ 100 tech index, which rose by 1.8 percent.
The NVIDIA papers thus further benefited from a press report from the previous day, according to which the world’s most expensive semiconductor company could act as an anchor investor in the forthcoming IPO of chip designer Arm.
NVIDIA also caused a sensation on Wednesday with an announced investment of 50 million US dollars in the pharmaceutical company Recursion Pharmaceuticals. This is intended to accelerate the biotech company’s development of models for drug research based on artificial intelligence. Recursion Pharmaceuticals shares were up 121 percent at times on Wednesday and are now up 4 percent.
Editorial office finanzen.net / dpa-AFX
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