Recursion Pharmaceuticals Inc. (RXRX) saw a significant surge in its share price on Wednesday following the announcement of a $50 million investment by Nvidia Corp. (NVDA). This collaboration aims to enhance drug discovery efforts through the utilization of artificial intelligence.
Recursion shares skyrocketed by up to 120%, reaching an intraday high of $14.99. Currently, the shares have settled at a 64% increase, trading at $11.11 during morning hours. Nvidia, a leading graphics processing unit manufacturer, made this private investment in public equity to support the acceleration of Recursion’s development in biology and chemistry using AI foundational models.
With an impressive amount of data at its disposal, Recursion boasts over 23 petabytes of data – equivalent to the storage required for approximately 5.13 million movies on DVDs. Furthermore, the company possesses 3 trillion searchable gene and compound relationships.
To expedite its progress, Recursion will take advantage of Nvidia’s innovative BioNeMo cloud drug discovery service. This service was first unveiled at Nvidia’s GTC event in March and is set to revolutionize the field of drug development.
This substantial investment from Nvidia is expected to solidify the company’s position as the dominant player in the AI chip market, with projections of capturing approximately 90% of the market initially.
In conclusion, Recursion Pharmaceuticals’ partnership with Nvidia and the infusion of $50 million investment marks a significant milestone in the integration of artificial intelligence into drug discovery.
