Text size
Nvidia is investing $50 million in Recursion Pharmaceuticals.
Dreamstime
Recursion
Pharmaceuticals announced on Wednesday that it has received a $50 million investment from
Nvidia
through a private investment in public equity, or PIPE, transaction.
“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,”
Recursion
CEO Chris Gibson said in the release.
Recursion (ticker: RXRX) is a clinical-stage biotechnology company looking to industrialize drug discovery by decoding biology. The company said it plans to use
Nvidia
(NVDA) technology and expertise to create AI models and software for the purpose of drug discovery.
“Generative AI is a revolutionary tool to discover new medicines and treatments,” Nvidia CEO Jensen Huang said in the release. “We are delighted to collaborate with Recursion’s world-class team, which is doing pioneering work.”
Nvidia chips have high exposure to generative AI, which has been trending this year. The technology ingests text, images, and videos in a brute-force manner to create content and provide analytical output.
Recursion Pharmaceuticals has gained 153% in premarket trading Wednesday, while Nvidia stock has gained 1.4%.
Write to Tae Kim at tae.kim@barrons.com
..
