Nvidia’s $50 Million Investment in Recursion Fuels Surge in AI Drug Discovery
Recursion Pharmaceuticals, a tech-biotech company, saw its stock value nearly double after receiving a $50 million investment from tech leader Nvidia. This substantial jump in stock price is due to a new collaboration between the two companies that aims to use artificial intelligence (AI) to revolutionize how we discover new drugs.
Recursion has a large and searchable database of biological and chemical data. When the stock market opened, the value of Recursion’s stock had shot up by an incredible 130%, reaching its highest level since January 2022. At the same time, Nvidia’s stock also rose by 2.5%.
As part of the collaboration, Nvidia is investing money to help Recursion develop an AI system to effectively use its massive database, which includes over 3 trillion searchable gene and compound interactions. Recursion aims to use this database and Nvidia’s high-speed computing abilities to greatly improve the drug discovery process. Recursion’s CEO, Chris Gibson, highlighted that the partnership brings together two top-tier companies to tackle the complex problem of discovering new drugs.
Recursion’s database, which covers more than 23 petabytes of data, will be combined with Nvidia’s advanced computing abilities. This combination aims to use the power of AI to find complex relationships between trillions of genes and compounds, a task that is free from human bias.
Recursion’s database and new technologies, including those obtained from their recent purchase of Valence Discovery, will be used on Nvidia’s DGX™ Cloud. This will help train new foundation models, and may also lead to potential commercial licenses or releases on BioNeMo, Nvidia’s cloud service for AI drug discovery.
Nvidia’s CEO, Jensen Huang, recognizes the important role that AI can play in discovering new drugs and treatments. He is excited to work with Recursion’s innovative team to use Nvidia’s AI software to speed up the development of large-scale biomolecular AI models.
Despite the big increase in the value of Recursion’s stock, Wall Street analysts have given RXRX stock a Moderate Buy rating. This rating is based on three Buys, three Holds, and zero Sells given over the past three months. The average price target for the stock is $15 per share, suggesting a potential 31.93% increase, even after its massive 70% rise.
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